Public Management and Finance Law (2005 Revision)
Supplement No. 2 published with Gazette No. 18 of 5th September, 2005.
PUBLIC MANAGEMENT AND FINANCE LAW
(2005 Revision)
Law 25 of 2001 consolidated with Laws 18 of 2002, 4 of 2004 and 23 of 2004,
and as amended by the Cayman Islands (Constitution) (Amendment) Order 2003
(U.K.S.I. 2003 No. 1515).
Revised under the authority of the Law Revision Law (1999 Revision)
Originally enacted Law 25 of 2001-26th September, 2001
Law 18 of 2002-7th November, 2002
Law 4 of 2004-17th March, 2004
Law 23 of 2004-29th October, 2004.
Originally made U.K. Order-12th June, 2003.
Consolidated and revised this 12th day of July, 2005.
Note (not forming part of the Law): This revision replaces the 2003 Revision
which should now be discarded.
Public Management and Finance Law (2005 Revision)
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Public Management and Finance Law (2005 Revision)
PUBLIC MANAGEMENT AND FINANCE LAW
(2005 Revision)
ARRANGEMENT OF SECTIONS
PART I - Introductory
1.
2.
3.
4.
5.
Short title
Definitions
Meaning of accounting terms
Accrual accounting
Meaning of controlling interest
PART II - Legislative Assembly
Appropriation functions of Legislative Assembly
6.
7.
8.
9.
10.
11.
12.
Law required for changes to coercive revenue
Appropriations required for various transactions
Resolution required for guarantees
Appropriations
Permanent appropriations
Authorisation in advance of appropriation
Advance approval of executive expenses and capital expenditure
PART III - Governor in Cabinet
Powers and duties of the Governor in Cabinet
13.
14.
15.
16.
Emergency expenditure
Responsible financial management
Shareholding arrangements for government companies
Governor in Cabinet’s power to direct
Government budgeting
17.
18.
19.
20.
21.
22.
23.
Budget process
Strategic phase
Detailed planning and budgeting phase
Governor in Cabinet collective review phase
Legislative Assembly review phase
Documentation phase
Strategic policy statement
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Public Management and Finance Law (2005 Revision)
24.
25.
26.
27.
Annual plan and estimates
Supplementary annual plan and estimates
Pre-election economic and financial update
Information to be included in forecasts
Government reporting
28. Government quarterly report
29. Government annual report
Agreeing output and ownership performance
30. Agreement and monitoring of output delivery
31. Agreement and monitoring of ownership performance
Powers and duties of Financial Secretary
32.
33.
34.
35.
36.
Duties of Financial Secretary
Delegation by Financial Secretary
Powers relating to specific financial transactions
Power to make regulations
Power to direct over ownership matters
PART IV - Ministries and Portfolios
Duties of ministries, portfolios and chief officers
37. Duties of ministries and portfolios
38. Duties of chief officer of a ministry or portfolio
Powers of ministries, portfolios and chief officers
39. Powers of chief officer of a ministry or portfolio
40. Delegation by chief officer
41. Further duties and powers of, and prohibitions on, ministries and portfolios
Performance specification and reporting
42.
43.
44.
45.
Annual Budget Statement
Ministry or portfolio quarterly report
Ministry or portfolio annual report
Application of Part IV to Office of the Complaints Commissioner
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Public Management and Finance Law (2005 Revision)
PART V - Statutory Authorities and Government Companies
Duties and powers of statutory authorities and government companies
46. Duties of statutory authorities and government companies.
47. Duties of board
48. Acquisition and disposal of subsidiaries
Performance specification and reporting
49.
50.
51.
52.
53.
Annual purchase agreement.
Annual ownership agreement
Half-yearly report
Statutory authority or government company annual report
Exclusion of commercially sensitive matters
PART VI - Portfolio of Finance and Economics
54.
55.
56.
57.
Duties of Portfolio of Finance and Economics
Executive bank account
Power to request information for Government reporting
Powers of Internal Audit Unit
PART VII - Audit Office
Auditor-General
58. Independence of Auditor-General
59. Appointment of acting Auditor-General
Powers and duties of Auditor-General
60.
61.
62.
63.
64.
65.
Powers and duties of Auditor-General
Reporting by Auditor-General
Reporting sensitive information
Obligations of Auditor-General
Investigatory powers of Auditor-General
Appointment of contractors
Accountability arrangements in relation to Audit Office
66.
67.
68.
69.
Audit Office
Application of Part IV to Audit Office
Fees and charges
Annual report of Audit Office
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Public Management and Finance Law (2005 Revision)
PART VIII - General Provisions
Trust assets
70.
71.
72.
73.
74.
75.
Trust assets to be separately accounted for
Trust bank accounts
Deposit of trust assets consisting of money
Transfer of trust assets
Unclaimed trust assets
Bona vacantia
Offences
76. Offences and penalties
77. Offences by corporation
Miscellaneous provisions
78.
79.
80.
81.
Law not to affect independence of Governor
Law not to affect constitutional independence of Attorney-General
Law not to affect constitutional independence of Judiciary
Law not to affect constitutional independence of Complaints Commissioner
Transitional arrangements, repeals and consequential amendments
82. Transition of accounts
83. Transition to responsible financial management
First Schedule: Economic forecasts
Second Schedule: Forecast financial statements
Third Schedule: Quarterly financial statements
Fourth Schedule: Annual financial statements
Fifth Schedule: Ownership performance measures
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Public Management and Finance Law (2005 Revision)
PUBLIC FINANCE AND MANAGEMENT LAW
(2005 Revision)
PART I - Introductory
1. This Law may be cited as the Public Management and Finance Law, (2005
Revision).
Short title
2.
Definitions
In this Law-
“appropriation” means a power given by an Appropriation Law to the Governor
in Cabinet to incur executive expenses, make an equity investment, acquire or
create executive assets, or lend or borrow money for a particular purpose;
“Appropriation Law” and “Appropriation Bill” respectively mean a Law or Bill
which provides or would provide for appropriation in respect of the annual plan
and estimates for a financial year;
“Audit Office” means the department, including all of its staff and physical
resources, of which the chief officer is the Auditor-General;
“borrowing”, except in section 14(3)(c), means any borrowing of money or other
receipt of credit, whether secured or unsecured, and includes any hire purchase
agreement or finance lease, but does not include the purchase of goods or services
on credit for a period of ninety days or less;
“capital withdrawal” means the withdrawal of equity investment from an entity;
“centralised accounting information system” means the accounting information
system established, operated and managed by the Portfolio of Finance and
Economics under section 54;
“centralised banking system” means the system of bank accounts consisting of
the executive bank account and the bank accounts of ministries and portfolios, the
Office of the Complaints Commissioner and the Audit Office established,
operated and managed by the Portfolio of Finance and Economics under section
54;
“chief officer” means (a)
in the case of a ministry, the Permanent Secretary of that
ministry;
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Public Management and Finance Law (2005 Revision)
(b)
(c)
(d)
(e)
(f)
(i) in the case of the Portfolio of Internal and External Affairs,
the such public officer in the Portfolio as may be designated
by the Governor;
(ii) in the case of the Portfolio of Legal Affairs, such public
officer in the Portfolio as may be designated by the
Governor; and
(iii) in the case of the Portfolio of Finance and Economics, such
public officer in the Portfolio as may be designated by the
Governor;
in the case of a statutory authority or a government company, the
person appointed as chief officer (by whatever name called) by
the board of that authority or company;
in the case of the Audit Office, the Auditor-General;
in the case of the judicial administration, the court administrator
or such other suitable person as may be designated by the Chief
Justice; and
in the case of the Office of the Complaints Commissioner, the
Complaints Commissioner;
“coercive revenue” means revenue earned by the core government using the
coercive power of the state and for which no direct exchange of service occurs;
UKSI
1972 No. 1,101, etc.
“Constitution” means the Cayman Islands (Constitution) Orders 1972 to 2004;
“core government” means the Legislative Assembly, the Governor in Cabinet,
ministries, portfolios, the Office of the Complaints Commissioner and the Audit
Office and includes the equity investment in statutory authorities and government
companies;
“entire public sector” means the Legislative Assembly, the Governor in Cabinet,
ministries, portfolios, statutory authorities, government companies, the Office of
the Complaints Commissioner and the Audit Office;
“entity” means any body and includes a ministry, portfolio, statutory authority,
government company, the Office of the Complaints Commissioner and the Audit
Office ;
“entity assets”, in relation to a ministry, portfolio, statutory authority, government
company, the Office of the Complaints Commissioner or the Audit Office, means
all assets controlled by that entity for the purpose of producing its outputs, but
does not include any assets of the core government declared by the Financial
Secretary not to be assets of that entity or allocated or transferred by him to
another entity by regulations made under section 35;
“entity expenses”, in relation to a ministry, portfolio, statutory authority,
government company, the Office of the Complaints Commissioner or the Audit
Office, means expenses incurred by the entity in producing its outputs or in
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Public Management and Finance Law (2005 Revision)
carrying out any other of its activities, but does not include any expenses of the
core government declared by the Financial Secretary not to be expenses of that
entity or allocated or transferred by him to another entity by regulations made
under section 35;
“entity liabilities”, in relation to a ministry, portfolio, statutory authority,
government company, the Office of the Complaints Commissioner or the Audit
Office, means all liabilities incurred by the entity in respect of its own activities,
but does not include any liabilities of the core government declared by the
Financial Secretary not to be liabilities of that entity or allocated or transferred by
him to another entity by regulations made under section 35;
“entity financial transaction” means any financial transaction relating to entity
revenue, entity expenses, entity assets or entity liabilities;
“entity revenue”, in relation to a ministry, portfolio, statutory authority,
government company, the Office of the Complaints Commissioner or the Audit
Office, means revenue earned by the entity from the production of outputs
(including those purchased by the Governor in Cabinet) or any other of its own
activities, but does not include any revenue of the core government declared by
the Financial Secretary not to be revenue of that entity or allocated or transferred
by him to another entity by regulations made under section 35;
“equity investment” means an amount invested in a ministry, portfolio, statutory
authority, government company, the Office of the Complaints Commissioner or
the Audit Office by the Governor in Cabinet;
“exceptional circumstance” means an event which occurs during a financial year
and which (a) is beyond the control of the Governor in Cabinet;
(b) could not have been reasonably anticipated at the time of
enactment of the Appropriation Law for that financial year;
(c) has an economic or social impact that is significant enough to
necessitate executive financial transactions different from those
planned for that financial year; and
(d) requires the executive financial transactions to be entered into in
a timescale that makes compliance with the procedure established
by section 12 impractical;
“executive assets” means all assets of the core government other than entity
assets, and includes the equity investments of the Government in ministries,
portfolios, statutory authorities, government companies, the Office of the
Complaints Commissioner and the Audit Office, but does not include assets held
by the Government as trustee for another person;
“executive expenses” means all expenses incurred by the core government other
than entity expenses, and includes expenses incurred by the Governor in Cabinet
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Public Management and Finance Law (2005 Revision)
in purchasing outputs from ministries, portfolios, the Office of the Complaints
Commissioner, the Audit Office and other suppliers, but does not include
expenses incurred by the Government as trustee for another person;
“executive financial transaction” means any financial transaction relating to
executive revenue, executive expenses, executive assets or executive liabilities;
“executive liabilities” means all liabilities of the core government other than
entity liabilities but does not include liabilities of the Government as trustee for
another person;
“executive revenue” means all revenue earned by the core government other than
entity revenue, but does not include revenue earned by the Government as trustee
for another person;
“financial year” in relation to any entity required to report under this Law, means
a year ending on the 30th June or, in the case of a statutory authority or
government company, such other date as the Governor in Cabinet may determine;
“generally accepted accounting practice” means (a)
International Public Sector Accounting Standards issued by the
International Federation of Accountants;
(b) where no guidance is provided by those standards, International
Accounting Standards issued by the International Accounting
Standards Committee; or
(c) where no guidance is provided by the standards referred to in
paragraphs (a) and (b), accounting practice that is generally
accepted within the accounting profession in the United Kingdom
as appropriate for reporting by the national governments, regional
governments, local governments and related governmental
entities such as agencies, boards, commissions and enterprises;
“Government” means the Government of the Islands;
“government company” means (a)
a company in which the core government has a controlling
interest; and
(b) in respect of each such company, includes all subsidiary entities
of the company;
“input” means any labour, capital or other resource used to produce outputs;
“judicial administration” means the Government department, including all of its
staff and physical resources, which provides administrative support for the
Judiciary;
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Public Management and Finance Law (2005 Revision)
“loan” means any loan of money or other provision of credit, whether secured or
unsecured, but does not include the sale of goods or services on credit for a
period of ninety days or less;
“minister” means a member of the Legislative Assembly who has been elected to
the Governor in Cabinet in accordance with section 5 of the Constitution;
“ministry” means the whole of the division of government administration for the
actions of which a minister is accountable to the Legislative Assembly and
includes a departmental section or unit which forms part thereof, but does not
include a statutory authority, government company, the Office of the Complaints
Commissioner or the Audit Office;
“nature and scope of the activities” means the broad categories of the outputs
produced and of the markets to which they are provided;
“net worth” means total assets less total liabilities;
“non-governmental output supplier” means a person or entity that is supplying
outputs to the Governor in Cabinet and that is not a ministry, portfolio, statutory
authority, government company, the Office of the Complaints Commissioner or
the Audit Office;
“Office of the Complaints Commissioner” means the department, including all of
its staff and physical resources, of which the chief officer is the Complaints
Commissioner;”;
“official member” means a member of the Governor in Cabinet who is not a
minister;
“outcomes” means the impacts on, or the consequences for, the community of the
outputs or activities of the entire public sector, the core government, an entity or
other person;
“outputs” means the goods or services that are produced by an entity or other
person;
“output group” means a grouping of outputs having a similar nature;
“ownership performance” means, in relation to an entity, the performance that an
ordinary person who was the owner of that entity would expect of that entity;
“person” means an entity or individual;
“portfolio” means the whole of a division of government administration for the
actions of which an official member is accountable to the Legislative Assembly,
and includes (a) a departmental section or unit which forms part thereof;
(b) the Governor’s office; and
(c) the judicial administration;
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Public Management and Finance Law (2005 Revision)
but “portfolio” does not include a statutory authority, government company, the
Office of the Complaints Commissioner or the Audit Office;
“public officer” means any person employed in the civil service but does not
include any member of the Governor in Cabinet or Legislative Assembly;
“statutory authority” means an entity established by a law to carry out functions
which are capable under that law, of being funded, partly or entirely, by money
provided by the Governor in Cabinet, and for which the Governor or the
Governor in Cabinet has the power to appoint or dismiss the majority of the
Board or other governing body;
“subsidiary entity”, in relation to an entity, means an entity in which the first
mentioned entity has a controlling interest;
“transfer payment” means a benefit or similar payment for which no output or
consideration is provided; and
“trust assets” means assets (including money, but not money belonging to the
core government) transferred or paid to the Government, a ministry, portfolio, the
Office of the Complaints Commissioner or the Audit Office in trust for any
purpose or to hold for or on behalf of any person, and includes any such assets (a) to be held pending the completion of a transaction or dispute; or
(b) that belong or are due to any person and are collected under any
agreement with that person.
Meaning of accounting
terms
3. In this Law, the terms “asset”, “liability”, “revenue” and “expense” have the
meanings accorded to them by generally accepted accounting practice.
Accrual accounting
4. All financial information required by this Law shall be prepared on an
accrual accounting basis and in accordance with generally accepted accounting
practice.
Meaning of controlling
interest
5. For the purposes of this Law, the core government has a controlling interest
in a company if it has power by the exercise of voting rights to carry a resolution
at a general meeting of the company; and an entity has a controlling interest in a
subsidiary entity if it is able, by virtue of its ownership interest, to control the
subsidiary entity.
PART II - Legislative Assembly
Appropriation Functions of Legislative Assembly
Law required for
changes to coercive
revenue
6. (1) No coercive revenue may be collected and no changes to rates of
coercive revenue may be made except by authority of a law.
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Public Management and Finance Law (2005 Revision)
(2) Where the Legislative Assembly passes a resolution which (a)
provides for the collection of coercive revenue or for the
variation of the rate (with or without modification) or abolition of
any coercive revenue; and
(b) contains a declaration that it is expedient in the public interest
that the resolution should have statutory effect under this Law,
the resolution, subject to subsection (3), shall for a period expiring at the end of
twenty-eight days after the date on which it is passed, have statutory effect as if
contained in a law.
(3) A resolution shall cease to have statutory effect under subsection (2) if
the provisions giving effect to it are rejected during the passage of the Bill
containing them through the Legislative Assembly or if all Bills relating to the
measures in the resolution have not had their first reading within the next fifteen
days on which the Legislative Assembly sits after the vote on the resolution.
(4) Where a resolution ceases to have statutory effect by virtue of
subsection (3) or where the period of twenty-eight days terminates before a law
comes into operation providing for the collection of coercive revenue or varying
or abolishing any coercive revenue, any money paid in pursuance of the
resolution shall be paid or made good, and any deduction made in pursuance of
the resolution shall be deemed for all purposes to be an unauthorised deduction.
(5) Where the rate of any customs duty is altered by any resolution under
subsection (2), and any Bill which has been introduced into the Legislative
Assembly to give effect to that resolution provides for an alteration of the rate of
drawback to be allowed in respect of that rate of customs duty then, so long as
the resolution continues to have statutory effect, drawback under section 44 of
the Customs Law (2003 Revision) shall be allowed in accordance with the rate
provided in the Bill, subject to any necessary adjustment in case the rate of
drawback as enacted by the Legislative Assembly differs from the rate provided
in the Bill.
7.
Except as provided in sections 12 and 13 (a) no executive expenses may be incurred;
(b) no executive assets may be acquired or created, or loan made, by
the Governor in Cabinet;
(c) no equity investment may be made by the Governor in Cabinet;
and
(d) no borrowing may be undertaken by the Governor in Cabinet,
unless authorised by an appropriation.
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2003 Revision
Appropriations required
for various transactions
Public Management and Finance Law (2005 Revision)
Resolution required for
guarantees
Appropriations
8. Except as provided in section 13, no guarantee may be given by or on behalf
of the Government unless it has been authorised by a resolution of the Legislative
Assembly.
9. (1) All appropriations granted by the Legislative Assembly shall be
granted on an accrual accounting basis.
(2) Except as provided in section 10, the Legislative Assembly may grant
appropriations only to the Governor in Cabinet.
(3) Appropriations may be granted only in respect of (a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
the executive expense which may be incurred for each output
group to be purchased by the Governor in Cabinet from
ministries, portfolios, the Office of the Complaints
Commissioner, the Audit Office, statutory authorities,
government companies or non-governmental output suppliers;
the executive expense which may be incurred for each category
of transfer payment to be made by the Governor in Cabinet;
each category of executive expense relating to borrowings or
loans which may be authorised by the Governor in Cabinet;
each category of any other executive expenses which may be
authorised by the Governor in Cabinet;
the amount of each equity investment which may be authorised
by the Governor in Cabinet;
the capital cost of each acquisition or creation of executive assets
(other than equity investments) which may be authorised by the
Governor in Cabinet;
the amount of each category of loan which may be authorised by
the Governor in Cabinet; and
the amount which may be borrowed by the Financial Secretary.
(4) An amount appropriated in respect of an output group, category, equity
investment or executive asset referred to in subsection (3) may be used only for
that output group, category, equity investment or executive asset.
(5) Except to the extent otherwise provided by a law, an appropriation
lapses at the end of the financial year to which the law by which the appropriation
is granted relates.
Permanent
appropriations
10. (1) By virtue of this section, the items specified in subsection (2) are
appropriated.
(2) The items referred to in subsection (1) are 14
Public Management and Finance Law (2005 Revision)
(a) the salary, emoluments and allowances of the Auditor-General;
(b) the salaries, emoluments and allowances of members of the
judiciary and the magistracy;
(c) the employees’ and employer’s contributions to (i) the Public Service Pensions Fund established under the
Public Service Pensions Law (2004 Revision); and
(ii) a pension fund established in accordance with an Order
made by the Governor under the Judges’ Emoluments and
Allowances Law, 1997;
(d) the core government’s contributions to (i) the Public Service Pensions Fund established under the
Public Service Pensions Law (2004 Revision); and
(ii) a pension fund established in accordance with an Order
made by the Governor under the Judges’ Emoluments and
Allowances Law, 1997,
for past service liability;
(e) pension payments in accordance with (i) the pension plan established by the Public Service Pensions
Law (2004 Revision);
(ii) the Parliamentary Pensions Law, 2004;
(iii) the provisions for ex-gratia allowances in regulations made
under the Public Service Pensions Law (2004 Revision);
and
(iv) an Order made by the Governor under the Judges’
Emoluments and Allowances Law, 1997; and
(f) the executive expense relating to borrowings authorised by
Governor in Cabinet in accordance with this Law.
2004 Revision
Law 21 of 1997
Law 20 of 2004
(3) The estimated amount of executive expense for each of the items
referred to in subsection (2) for each financial year shall be reported in the annual
plan and estimates for that financial year in accordance with the appropriation
types specified in section 9(3).
11. (1) Subject to section 13, the executive financial transactions in respect of
a financial year may be authorised by a resolution of the Legislative Assembly in
advance of a law making appropriations for those transactions if (a)
the resolution is arranged according to each of the appropriation
types specified in section 9(3); and
(b) the resolution provides that it shall lapse after a period of four
months from the date of the resolution.
(2) A resolution referred to in subsection (1) may contain conditions and
limitations subject to which the authorisation is made.
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Authorisation in
advance of appropriation
Public Management and Finance Law (2005 Revision)
(3) All financial transactions authorised under a resolution referred to in
subsection (1) shall be subsumed by the amounts respectively provided in the law
making the appropriations in respect of the transactions when the law comes into
operation.
(4) Where the Legislative Assembly is dissolved before provision has
been made for carrying on the business of core government, the Financial
Secretary may authorise such of the executive financial transactions as he may
consider necessary for that purpose until the expiry of three months from the date
on which the Legislative Assembly next meets following that dissolution.
(5) Where an exceptional circumstance has occurred during a financial
year, the Governor in Cabinet may authorise executive financial transactions for
which no appropriation exists if (a)
the executive financial transactions directly relate to, and attempt
to remedy the effects of, the exceptional circumstance; and
(b) the total amount authorised is no more than five per cent of
budgeted executive revenue for the financial year.
(6) Where the Governor in Cabinet has authorised executive financial
transactions in accordance with subsection (5) (a)
a member of the Cabinet appointed by the Governor in Cabinet to
do so on his behalf shall, at the next sitting of the Legislative
Assembly after the exceptional circumstance has occurred, make
a statement to the Legislative Assembly advising of (i) the exceptional circumstance, its nature, and how it
complies with the definition of the term “exceptional
circumstance” set out in section 2;
(ii) the type and amount of the executive financial transactions
authorised or likely to be authorised; and
(iii) the effect of the authorisations, or likely authorisations on
compliance with the principles of responsible financial
management specified in section 14; and
(b) the authorised executive financial transactions are to be included
in the next supplementary Appropriation Bill introduced in the
Legislative Assembly after those transactions have been entered
into.
Advance approval of
executive expenses and
capital expenditure
12. (1) Subject to subsection (2), the Governor in Cabinet may authorise (a)
executive expenses for an output group, category of transfer
payment or category of other executive expense; and
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Public Management and Finance Law (2005 Revision)
(b) the acquisition or creation of executive assets, the making of
loans or the making of equity investments,
that are not included in an Appropriation Bill for a financial year.
(2) Before an executive expense is incurred, an executive asset acquired or
created or a loan or equity investment made in accordance with an authority
granted under subsection (1), the approval of the Finance Committee of the
Legislative Assembly is to be obtained.
(3) The executive expenses incurred, executive asset acquired or created,
or a loan or equity investment made in accordance with subsection (1) are to be
included in a supplementary Appropriation Bill for that financial year.
PART III – Governor in Cabinet
Powers and Duties of the Governor in Cabinet
13. (1) Notwithstanding any other provision of this Law, where a state of
emergency is proclaimed under the Emergency Powers Law (1997 Revision) the
Governor in Cabinet may approve such executive financial transactions to meet
the emergency as it thinks fit, whether or not those transactions have been
authorised by an appropriation, and those transactions may be entered into
accordingly.
(2) Without affecting the validity of any executive financial transactions
entered into under this section, a statement of such of those transactions that have
not been appropriated, but (apart from this section) are required to be
appropriated, shall be included (a)
in the first Government quarterly report under section 28 after
those transactions have been entered into; and
(b) in the first Government annual report under section 29 after those
transactions have been entered into,
and the cost of those transactions shall be included in the first Appropriation Bill
introduced to the Legislative Assembly after those transactions have been entered
into.
(3) Where (a) a state of emergency is proclaimed under the Emergency Powers
Law (1997 Revision); or
(b) an exceptional circumstance occurs,
the Legislative Assembly may, by resolution passed during or following the
state of emergency or exceptional circumstance, extend the date by which 17
Emergency expenditure
1997 Revision
Public Management and Finance Law (2005 Revision)
(i) a Government quarterly report is required to be gazetted
under section 28;
(ii) a Government annual report is required to be gazetted under
section 29;
(iii) a quarterly report of a ministry or portfolio, is required to be
presented to the Legislative Assembly under section 43;
(iv) an annual report of a ministry or portfolio, is required to be
presented to the Legislative Assembly under section 44;
(v) a half-yearly report of a statutory authority or government
company, is required to be presented to the Legislative
Assembly under section 51;
(vi) an annual report of a statutory authority or government
company, is required to be presented to the Legislative
Assembly under section 52; or
(vii) the Government budgeting process is to be completed in
accordance with sections 17 to 22.
(4) A resolution referred to in subsection (3) shall specify the new date for
compliance with the requirements of subsection (3)(i) to (vii).
Responsible financial
management
14. (1) The Governor in Cabinet shall manage the financial performance and
financial position of the core government in accordance with the principles set
out in this section.
(2) The policies and decisions of the Governor in Cabinet shall be
consistent with the principles of responsible financial management set out in
subsection (3), and the impact of those decisions on the core government’s
financial performance and position shall be measured using accrual accounting.
(3) The principles of responsible financial management referred to in
subsection (2) are (a)
total core government revenue less total core government
expenses (measured using generally accepted accounting
practice) should be positive;
(b) total core government assets less total core government liabilities
(measured using generally accepted accounting practice) should
be positive;
(c) borrowing should not exceed an amount for which the sum of
interest, other debt servicing expenses and principal repayments
for a financial year are more than ten per cent of core government
revenue (calculated using generally accepted accounting practice)
for that financial year, where, for the purposes of this principle,
borrowing is defined as all borrowing that is in the name of the
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Public Management and Finance Law (2005 Revision)
Government regardless of whether it is serviced directly by the
core government, a statutory authority or government company;
(d) net debt should be no more than eighty per cent of core
government revenue, where, for the purposes of this principle, net
debt is defined as (i) core government borrowing less core government liquid
assets;
(ii) borrowing that is serviced directly by a statutory authority
or government company but is in the name of the
Government; and
(iii) the percentage of statutory authority and government
company debt guaranteed by the Government that
regulations made under this Law specify is to be included in
the net debt calculation;
(e) cash reserves should be maintained at a level no less than the
estimated executive expenses (measured using generally accepted
accounting practice) for the following ninety days, where, for the
purposes of this principle, cash reserves are defined as core
government cash and cash equivalents, marketable securities and
deposits, and other liquid assets, including any amounts held for
restricted funds and reserves purposes; and
(f) the financial risks, including contingent liabilities, facing the core
government should be managed prudently so as to minimise the
likelihood of any such risk resulting in an expense or liability.
(4) Governor in Cabinet decisions may depart from the principles of
responsible financial management for a limited period if the Governor in Cabinet
specifies in a paper laid before the Legislative Assembly for its information
(which may be included in a relevant document required by this Law) (a) the reasons for the departure;
(b) the approach that the Governor in Cabinet intends to take in order
to return to those principles; and
(c) the period of time that the Governor in Cabinet expects to take to
return to those principles.
15. (1) All shares held in a government company by the core government shall
be held in the name “the Government of the Cayman Islands”.
(2) All the rights and powers attaching to the shares in a government
company, including the power of sale or disposition, held by the core government
may be exercised, on behalf of the core government by a minister or official
member appointed for the purpose by the Governor in Cabinet.
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Shareholding
arrangements for
government companies
Public Management and Finance Law (2005 Revision)
(3) The minister or official member may only sell or otherwise dispose of
the shares referred to in subsection (2) if authorised to do so by the Governor in
Cabinet and by a resolution of the Legislative Assembly.
Governor in Cabinet’s
power to direct
16. (1) Subject to subsection (3), the Governor in Cabinet may, by written
notice to the board of a statutory authority or government company, direct the
authority or company to (a)
pay a dividend for an amount, and at a time, specified in the
notice; or
(b) provide, at a time and in a manner specified in the notice, such
information as is specified in the notice,
and the authority or company shall comply with the direction.
(2) Before giving a direction under subsection (1), the Governor in
Cabinet shall consult the authority or company as to the matters to which the
direction is to relate.
(3) In the event of any inconsistency between of subsection (1) and the
operation of any other law, subsection (1) shall prevail to the extent of the
inconsistency.
Government Budgeting
Budget process
17. (1) No later than the 1st October in each year, the Governor in Cabinet, in
accordance with the advice of the Financial Secretary given under section 32(c),
shall establish the exact timing and process for preparing the budget for the next
financial year, including the timing of the phases referred to in subsection (2), and
shall cause the timetable to be gazetted immediately after the 1st October.
(2) The budget process shall include a “strategic phase”, a “detailed
planning and budgeting phase”, a “Governor in Cabinet collective review phase”,
a “Legislative Assembly review phase” and a “documentation phase”.
Strategic phase
18. During the strategic phase, the Governor in Cabinet shall (a)
determine for the next financial year and the following two
financial years (i) its broad outcome objectives;
(ii) its specific outcome objectives;
(iii) the forecast total amount of executive revenue and expenses
for each financial year;
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Public Management and Finance Law (2005 Revision)
(iv) the forecast amount of executive expenses to be allocated to
each minister, official member, the Office of the Complaints
Commissioner and the Audit Office for each financial year;
(v) the forecast total amount of core government equity
investments, acquisition of other executive assets, and loans
for each financial year; and
(vi) the forecast total amount of core government revenue,
expenses, borrowing and net worth; and
(b) prepare a strategic policy statement in accordance with section 23
incorporating the information determined under paragraph (a).
19. During the detailed planning and budgeting phase each minister and official
member shall -
Detailed planning and
budgeting phase
(a)
in conjunction with the ministry or portfolio for which he is
responsible, determine the outputs, transfer payments, equity
investments, changes to fees for Government services and
legislative measures that he proposes to influence the specific
outcomes agreed by the Governor in Cabinet;
(b) have due regard to the resolution of the Legislative Assembly on
the strategic policy statement under section 23; and
(c) ensure that (i) a draft annual budget statement has been prepared for his
ministry or portfolio in accordance with section 42;
(ii) a draft purchase agreement has been prepared for each
statutory authority, government company or nongovernmental output supplier from which the minister or
official member intends to purchase outputs in accordance
with sections 30(2) and 49; and
(iii) a draft ownership agreement has been prepared for each
statutory authority and each government company for which
the minister or official member is responsible in accordance
with section 50.
20. During the Governor in Cabinet collective review phase, the Governor in
Cabinet shall (a)
review and either agree or amend, the outputs, transfer payments,
equity investments and legislative measures that each minister or
official member proposes to pursue in the next financial year;
(b) review the annual budget statements, purchase agreements and
ownership agreements prepared in accordance with sections 30,
42 and 49 and ensure that they are consistent with the decisions
made under paragraph (a);
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Governor in Cabinet
collective review phase
Public Management and Finance Law (2005 Revision)
(c)
arrange for the preparation of the annual plan and estimates in
accordance with section 24 incorporating the information
determined under paragraph (a) and ensure that they are
consistent with the decisions made under paragraph (a); and
(d) ensure that the annual plan and estimates prepared under
paragraph (c) are consistent with the strategic policy statement
that has been approved under section 23.
Legislative Assembly
review phase
21. During the Legislative Assembly review phase -
Documentation phase
22. During the documentation phase, the Governor in Cabinet shall agree -
(a)
the Financial Secretary on behalf of the Governor in Cabinet shall
outline the annual plan and estimates to the Legislative
Assembly; and
(b) the Legislative Assembly shall review the annual plan and
estimates and authorise the Governor in Cabinet to give effect to
that plan (amended as required by the Legislative Assembly) by (i) authorising, by law, changes to types of coercive revenue or
rates of coercive revenue;
(ii) authorising, by an Appropriation Law and in accordance
with section 9, the executive expenses, borrowing and other
executive financial transactions referred to in section 9; and
(iii) authorising by resolution, the giving of guarantees by the
Government.
(a)
a finalised annual budget statement with each chief officer of a
ministry or portfolio in accordance with section 42;
(b) a finalised purchase agreement with each statutory authority,
government company, or non-governmental output supplier from
which the Governor in Cabinet will purchase outputs, in
accordance with sections 30(2) and 49;
(c) a finalised ownership agreement with each statutory authority and
government company in accordance with section 50; and
(d) a final annual plan and estimates in accordance with section 24,
taking into account the authorities provided by the Legislative Assembly in
accordance with section 21.
Strategic policy
statement
23. (1) The strategic policy statement for the next financial year shall be
presented to the Legislative Assembly by a member of the Governor in Cabinet
appointed by the Governor in Cabinet to do so on their behalf not later than the
1st December in each year for approval within two months, and if the Legislative
Assembly has not within that period resolved to approve, amend or reject the
statement it shall be deemed to be approved.
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Public Management and Finance Law (2005 Revision)
(2) The strategic policy statement shall include (a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
a summary of the broad outcomes, the specific outcomes, and the
links between them, that the Governor in Cabinet intends to
achieve in the next financial year and for at least the following
two financial years;
economic forecasts for that financial year and for the next two
financial years, which shall contain the information set out in the
First Schedule;
the date on which the economic forecasts referred to in paragraph
(b) were made;
a total financial target for the core government for the next
financial year and for each of the following two financial years,
for each of (i) operating revenue;
(ii) operating expenses;
(iii) surplus or deficit, being the difference between total
operating revenue and total operating expenses;
(iv) borrowings;
(v) net worth; and
(vi) net cash flows for each of its operating, investing and
financing activities;
an explanation of how the financial targets referred to in
paragraph (d) accord with the principles of responsible financial
management set out in section 14(3) and, if those targets depart
from those principles, the information required by section 14(4);
the total amount of executive expenses for each financial year;
the approximate amount of executive expenses allocated to each
minister, official member, the Office of the Complaints
Commissioner and the Audit Office for each financial year; and
the total amount of core government equity investments,
acquisition of other executive assets, and loans for each financial
year.
(3) As soon as the strategic policy statement is presented to the Legislative
Assembly it shall be a public document, and the Financial Secretary shall provide
a copy to any person requesting one on payment of a copying charge prescribed
by regulations made by the Financial Secretary.
24. (1) Unless authorisation has been provided in advance of appropriation in
accordance with section 12, the annual plan and estimates for the next financial
year shall be presented by the Financial Secretary on behalf of the Governor in
Cabinet to the Legislative Assembly, not later than the 1st May in each year, for
review.
23
Annual plan and
estimates
Public Management and Finance Law (2005 Revision)
(2) The annual plan and estimates shall (a)
summarise the specific outcomes that the Governor in Cabinet is
seeking to influence in the financial year to which the annual plan
and estimates relate and the manner in which it intends to achieve
those specific outcomes;
(b) specify the output groups, transfer payment categories, other
executive expenses, equity investments, capital withdrawals,
capital expenditure on executive assets, disposals of executive
assets, loans and legislative measures that the Governor in
Cabinet intends to pursue during the budget year;
(c) explain how the specific outcomes referred to in paragraph (a)
and the matters referred to in paragraph (b), accord with the
Legislative Assembly resolution approving the strategic policy
statement made under section 23;
(d) provide forecast financial statements for the core government and
the entire public sector for the budget year which shall contain
the statements and information set out in the Second Schedule;
(e) explain how the core government forecast financial statements
accord with (i) the financial targets contained in the most recently
published strategic policy statement and the Legislative
Assembly resolution on that strategic policy statement made
under section 23; and
(ii) the principles of responsible financial management and, if
those forecasts depart from those principles, the information
required by section 14; and
(f) provide a schedule of appropriations requested of the Legislative
Assembly.
(3) Where there is a requirement in any law that expenditure be met from
executive revenue, the annual plan and estimates shall incorporate such
expenditure, categorised appropriately.
(4) The Financial Secretary shall introduce an Appropriation Bill
providing for appropriations in accordance with section 9 consistent with the
contents of the annual plan and estimates at the same time as the annual plan and
estimates are presented to the Legislative Assembly.
(5) At the same time that he introduces the Bill under subsection (4), the
Financial Secretary shall, where relevant (a)
introduce a Bill to authorise changes to types or rates of coercive
revenue; and
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Public Management and Finance Law (2005 Revision)
(b) move a resolution to authorise the giving of guarantees by the
Government.
(6) As soon as the annual plan and estimates are presented to the
Legislative Assembly they shall be public documents, and the Financial Secretary
shall provide copies to any person requesting them on payment of a copying
charge prescribed by regulations made by the Financial Secretary.
25. (1) Before the Governor in Cabinet requests changes to appropriations
already granted for a financial year, it shall prepare a supplementary annual plan
and estimates for that year.
Supplementary annual
plan and estimates
(2) A supplementary annual plan and estimates shall be presented to the
Legislative Assembly by the Financial Secretary together with a supplementary
Appropriation Bill.
(3) A supplementary annual plan and estimates for a financial year shall
include (a)
the information referred to in section 24 insofar as it differs from
that in the annual plan and estimates for that year, together with
an explanation of the differences; and
(b) in respect of each changed appropriation, the amount of the
original appropriation, the adjustment and the new total amount
of that appropriation.
(4) As soon as the supplementary annual plan and estimates are presented
to the Legislative Assembly they shall be public documents, and the Financial
Secretary shall provide copies to any person requesting them on payment of a
copying charge prescribed by regulations made by the Financial Secretary.
26. (1) Subject to subsection (4), not more than forty-two days, nor less than
twenty-eight days before the day specified in a writ issued by the Governor under
the Elections Law (2004 Revision) as the date for a general election, the
Financial Secretary shall gazette a pre-election economic and financial update.
(2) A pre-election economic and financial update shall include (a)
economic forecasts for the current financial year and for the next
two financial years, which shall contain the information set out in
the First Schedule;
(b) forecast financial statements for the core government and the
entire public sector for the current financial year and for the next
two financial years which shall contain the statements and
information set out in the Second Schedule;
25
Pre-election economic
and financial update
2004 Revision
Public Management and Finance Law (2005 Revision)
(c)
a statement specifying the date on which those economic
forecasts and forecast financial statements were prepared; and
(d) an explanation of how the core government forecast financial
statements accord with the principles of responsible financial
management and, if those forecasts depart from those principles,
the information required by section 14.
(3) As soon as the pre-election economic and financial update is published
it shall be a public document, and the Financial Secretary shall provide a copy to
any person requesting one on payment of a copying charge prescribed by
regulations made by the Financial Secretary.
2004 Revision
Information to be
included in forecasts
(4) A pre-election economic and financial update shall not be required if
an annual plan and estimates has been presented to the Legislative Assembly less
than three months before the date specified for a general election in a writ issued
by the Governor under the Elections Law (2004 Revision).
27. (1) Subject to subsection (2), the economic forecasts required by section
26 and the forecast financial statements required by sections 24 and 26 shall
include the economic and financial impact of all Governor in Cabinet decisions
that may have a material effect on the forecasts.
(2) Subsection (1) does not apply to the extent that the Financial Secretary
determines that compliance with that subsection will be likely to (a) significantly prejudice the economic interests of the Islands;
(b) significantly compromise the Government in any negotiation,
litigation or commercial activity; or
(c) result in a significant financial loss to the Government.
Government Reporting
Government quarterly
report
28. (1) No later than eight weeks after the end of each of the first three
quarters in each financial year, the Governor in Cabinet shall gazette a
Government quarterly report for the quarter just ended and for any preceding
quarters in that financial year on a cumulative basis.
(2) The Government quarterly report shall report the performance of the
core government and the entire public sector for the period covered by the report
and compare it with that proposed in the annual plan and estimates for that
financial year and shall include (a)
a summary of the output groups, transfer payment categories,
other executive expenses, equity investments, capital
withdrawals, capital expenditure on executive assets, disposals of
26
Public Management and Finance Law (2005 Revision)
executive assets, loans and legislative measures that the Governor
in Cabinet has sought to implement during that quarter and any
preceding quarters in that financial year on a cumulative basis;
(b) financial statements for the core government and the entire public
sector which shall (i) be prepared on a basis consistent with the forecast financial
statements in the annual plan and estimates for that year;
and
(ii) contain the statements and information set out in the Third
Schedule; and
(c) a schedule of appropriations used for that quarter and for any
preceding quarters in that financial year on a cumulative basis
compared with the appropriations granted under the
Appropriation Law for the financial year.
(3) At the earliest possible date after the gazettal of a quarterly report
under subsection (1), a member of the Governor in Cabinet appointed by the
Governor in Cabinet to do so on their behalf shall present the quarterly report to
the Legislative Assembly to review.
(4) As soon as the Government quarterly report is published it shall be a
public document, and the Financial Secretary shall provide a copy to any person
requesting one on payment of a copying charge prescribed by regulations made
by the Financial Secretary.
29. (1) No later than five months and two weeks after the end of each
financial year, the Governor in Cabinet shall gazette a Government annual report
for that financial year.
(2) The Government annual report shall report the performance of the core
government and the entire public sector and compare it with that proposed in the
annual plan and estimates for that financial year, and shall include (a)
a summary of the specific outcomes that the Governor in Cabinet
was seeking to achieve in that year;
(b) an audited summary of the output groups, transfer payments
groups, other executive expenses, equity investments, capital
withdrawals, capital expenditure on executive assets, disposals of
executive assets, loans and legislative measures that the Governor
in Cabinet has implemented during the year;
(c) audited financial statements for the core government and the
entire public sector for that year which shall -
27
Government annual
report
Public Management and Finance Law (2005 Revision)
(i) be prepared on a basis consistent with the forecast financial
statements in the annual plan and estimates for that year;
and
(ii) contain the statements and information set out in the Fourth
Schedule; and
(d) an audited schedule of appropriations used for the year compared
with the appropriations granted under the Appropriation Law
(together with any supplementary Appropriation Law) for the
financial year.
(3) The summary, the financial statements and the schedule referred to in
subsection (2)(b), (c) and (d) shall be prepared within four months of the end of
the financial year and submitted to the Auditor-General for auditing, and the
Auditor-General shall express an opinion within one month of receipt of the
financial statements.
(4) At the earliest possible date after the gazettal of an annual report under
subsection (1), a member of the Governor in Cabinet appointed by the Governor
in Cabinet to do so on their behalf shall present the annual report to the
Legislative Assembly to review.
(5) As soon as the Government annual report is published it shall be a
public document, and the Financial Secretary shall provide a copy to any person
requesting one on payment of a copying charge prescribed by regulations made
by the Financial Secretary.
Agreeing Output and Ownership Performance
Agreement and
monitoring of output
delivery
30. (1) Each financial year, the Governor in Cabinet shall, by way of an
annual budget statement under section 42 or a purchase agreement under section
49, agree with each ministry, portfolio, statutory authority or government
company, the outputs it wishes the entity to deliver in that financial year.
(2) Where the Governor in Cabinet wishes a non-governmental output
supplier to deliver an output, the Governor in Cabinet shall enter into a written
purchase agreement with the non-governmental output supplier for the supply of
that output.
(3) A purchase agreement with a non-governmental output supplier
entered into under subsection (2) shall contain the information specified in
section 48(2)(a) to (h) and shall be (a)
prepared in accordance with the timetable established by the
Governor in Cabinet in accordance with section 17;
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Public Management and Finance Law (2005 Revision)
(b) available for review by the Governor in Cabinet as part of the
Governor in Cabinet collective review phase of the budget
process in accordance with section 20;
(c) presented to the Legislative Assembly by the relevant minister or
official member at the same time as the annual plan and estimates
for the financial year are presented in accordance with section
24(1);
(d) finalised immediately the Legislative Assembly review phase of
the budget process has been completed in accordance with
section 21;
(e) signed by a member of the Governor in Cabinet on behalf of the
Governor in Cabinet and by an authorised officer of the nongovernmental output supplier no later than the beginning of the
financial year; and
(f) presented to the Legislative Assembly, for the information of the
Legislative Assembly, by the relevant minister or official member
on the next sitting day after it has been signed.
(4) A purchase agreement with a non-governmental output supplier
entered into under subsection (2) may be amended at any time by agreement
between the non-governmental output supplier and the Governor in Cabinet.
(5) All amendments to a purchase agreement shall be in writing and
presented, within a period of sixty days after it has been signed, to the Legislative
Assembly for its information.
(6) The Governor in Cabinet shall monitor the delivery of outputs during
the financial year against the relevant annual budget statement or purchase
agreement and may only authorise payment for those outputs when it is satisfied
that the specified outputs have been satisfactorily delivered.
31. (1) Each financial year, the Governor in Cabinet shall, by way of an
annual budget statement under section 42 or annual ownership agreement under
section 50, agree with each ministry, portfolio, statutory authority or government
company the ownership performance it wishes the entity to achieve during that
financial year.
(2) The Governor in Cabinet shall monitor the ownership performance of
the entity during the financial year against the relevant annual budget statement or
annual ownership agreement and shall take appropriate action if at any time it
appears the ownership performance specified in the relevant document will not be
achieved.
29
Agreement and
monitoring of ownership
performance
Public Management and Finance Law (2005 Revision)
Powers and Duties of Financial Secretary
Duties of Financial
Secretary
32. The Financial Secretary shall -
Delegation by Financial
Secretary
33. (1) Where a power or duty is expressed or imposed on the Financial
Secretary under this Law, the Financial Secretary may authorise a member of the
Governor in Cabinet or a public officer, by signed instrument in writing, to
exercise or perform on his behalf all or part of that power or duty.
(a)
oversee the management of the finances of the core government
and the entire public sector;
(b) undertake the financial transactions specified in section 34;
(c) advise the Governor in Cabinet on the budget process for the
following financial year to be established in accordance with
section 17;
(d) ensure that the forecast financial statements required by sections
24 and 26 are prepared by the Portfolio of Finance and
Economics under section 54 and ready for presentation in
accordance with those sections;
(e) bring to the Legislative Assembly’s attention any divergence
between the fiscal policy of the core government and the
principles of responsible financial management specified in
section 14;
(f) ensure that the reporting requirements for the Government
established by sections 28 and 29 are complied with; and
(g) prior to the commencement of the detailed planning and
budgeting phase of the budget process required by section 17, set
the capital charge rate for the next financial year.
(2) The Financial Secretary may revoke or amend an authorisation given
under subsection (1).
(3) The giving of an authorisation does not prevent the exercise of a power
or the performance of a duty by the Financial Secretary personally.
Powers relating to
specific financial
transactions
34. (1) Subject to subsection (3), the Financial Secretary may, on behalf of the
Governor in Cabinet (a)
(b)
(c)
(d)
borrow money;
make a loan;
give a guarantee; and
enter into any financial transaction or financial obligation for the
purpose of avoiding or reducing an adverse impact on executive
assets, executive liabilities, executive revenue, or executive
30
Public Management and Finance Law (2005 Revision)
expenses, that may be caused by currency or interest rate
fluctuations, or by credit, liquidity or funding risks,
on such terms and conditions as the Governor in Cabinet may determine.
(2) Subject to section 33, no person other than the Financial Secretary may
enter into any transaction of a kind referred to in subsection (1).
(3) The Financial Secretary shall not (a)
borrow money on behalf of the Governor in Cabinet, unless the
borrowing (i) has been authorised by an appropriation;
(ii) is consistent with the statement of borrowings included in
the annual plan and estimates or supplementary annual plan
and estimates for that financial year; and
(iii) has been approved by the Foreign and Commonwealth
Office of the United Kingdom, where any of the principles
of responsible financial management specified in section
14(3)(c), (d) or (e) are in breach;
(b) make a loan, unless the loan (i) has been authorised by an appropriation; and
(ii) is consistent with the statement of loans included in the
annual plan and estimates or supplementary annual plan and
estimates for that financial year; or
(c) give a guarantee, unless the guarantee has been authorised by
resolution of the Legislative Assembly.
35. The Governor in Cabinet on the advice of the Financial Secretary may make
regulations (a)
requiring such information to be supplied to him as he considers
necessary to enable the preparation of a report which he, his
portfolio or the Governor in Cabinet is required by this Law to
prepare;
(b) prescribing accounting policies to be applied in preparing
financial information for the purposes of this Law;
(c) governing the operation of the centralised accounting information
system established under section 54(h);
(d) governing the operation of the centralised banking system
established under section 54(i);
(e) regulating the operation of bank accounts of ministries,
portfolios, the Office of the Complaints Commissioner and the
Audit Office;
31
Power to make
regulations
Public Management and Finance Law (2005 Revision)
(f)
governing the calculation and payment of the capital charge
required to be paid by ministries, portfolios, the Office of the
Complaints Commissioner and the Audit Office under section
41(5);
(g) regulating the financial management practices of ministries,
portfolios, the Office of the Complaints Commissioner and the
Audit Office;
(h) providing for competitive tendering in connection with contracts
to be entered into by or on behalf of the core government,
statutory authorities or government companies;
(i) prescribing and regulating the functions of the Director of
Internal Audit;
(j) allocating or transferring entity assets, liabilities or revenue of the
core government from, to or between entities;
(k) establishing the weighting of statutory authority and government
company debt to be included in the calculation of net debt in
accordance with section 14(3)(d); and
(l) prescribing matters (i) required or permitted by this Law to be prescribed by the
Financial Secretary; or
(ii) necessary or convenient to be prescribed by the Financial
Secretary for carrying out or giving effect to this Law.
Power to direct over
ownership matters
36. (1) Subject to subsection (2), the chief officer of a ministry, a portfolio,
the Office of the Complaints Commissioner or the Audit Office shall comply with
any direction given by the Financial Secretary, expressed to be under this section,
which he considers necessary to protect the core government’s financial interests.
(2) The Financial Secretary shall not give a direction under subsection (1)
that prevents the chief officer of a ministry, a portfolio, the Office of the
Complaints Commissioner or the Audit Office from exercising their powers under
section 39 unless (a)
he considers it necessary to avoid or reduce either a serious loss
to the core government or criminal activity; or
(b) he is satisfied that the entity has consistently failed to comply
with the requirements of section 39 or 41, for three months after
he has given notice to the entity (i) specifying the respects in which the entity has failed to so
comply; and
(ii) stating that he intends to give such a direction if the entity
continues to fail to so comply during the next three months.
(3) Before giving a direction under subsection (1), the Financial Secretary
shall consult the entity concerned.
32
Public Management and Finance Law (2005 Revision)
PART IV-Ministries and Portfolios
Duties of Ministries, Portfolios and Chief Officers
37. (1) Subject to subsection (2), a ministry or portfolio shall (a)
supply the outputs that it has agreed in the annual budget
statement with the Governor in Cabinet under section 42 that it
will deliver during the year, including (i) policy advice on the specific outcomes and the mix of
outputs, transfer payments, other executive expenses, equity
investments, capital withdrawals, capital expenditure on
executive assets, disposals of executive assets and other
legislative measures to best achieve those outcomes;
(ii) the provision of administrative services to the Governor in
Cabinet or individual members of the Governor in Cabinet;
(iii) negotiating, agreeing and monitoring of purchase
agreements with statutory authorities, government
companies or non-governmental output suppliers;
(iv) negotiating, agreeing and monitoring of ownership
agreements with statutory authorities and government
companies; and
(v) other outputs agreed with the Governor in Cabinet;
(b) supply outputs to entities or individuals other than the Governor
in Cabinet for payment and in accordance with agreements with
those entities or individuals under section 39; and
(c) achieve the ownership performance that it has agreed in its
annual budget statement under section 42 that it will achieve
during the financial year.
Duties of ministries and
portfolios
(2) A ministry or portfolio shall not produce an output during a financial
year unless (a)
those outputs are within the nature and scope of the activities that
are set out in its annual budget statement under section 42; and
(b) the Governor in Cabinet, or another entity or person, has by way
of formal agreement, agreed to pay for the full cost of the output
to be produced.
(3) In the event of any inconsistency between the subsection (2) and the
operation of any other law, subsection (2) shall prevail to the extent of the
inconsistency.
38. (1) The chief officer of a ministry or portfolio shall ensure that his
ministry or portfolio 33
Duties of chief officer of
a ministry or portfolio
Public Management and Finance Law (2005 Revision)
(a) complies with its duties under section 37;
(b) delivers the outputs specified in his annual budget statement
prepared in accordance with section 42;
(c) achieves the ownership performance specified in his annual
budget statement prepared in accordance with section 42; and
(d) complies with this Law.
(2) A chief officer of a ministry or portfolio shall work with the chief
officers of the other ministries or portfolios to (a)
provide co-ordinated and integrated policy advice to the
Governor in Cabinet; and
(b) assist the Governor in Cabinet to prepare the reports and
documents required to be prepared by the Governor in Cabinet
under this Law.
Powers of Ministries, Portfolios and Chief Officers
Powers of chief officer
of a ministry or portfolio
39. (1) It is the responsibility of a minister or official member to recommend
to the Governor in Cabinet the outputs to be purchased from their ministries or
portfolios and it is the responsibility of the Governor in Cabinet to determine the
outputs to be purchased from a ministry or portfolio; and no outputs may be
produced by a ministry or portfolio unless the production of those outputs has
been agreed by the Governor in Cabinet in the relevant annual budget statement.
(2) It is the responsibility of the chief officer to determine and acquire the
inputs required to produce the outputs specified in his finalised annual budget
statement and, subject to section 40, no decision or action in relation to inputs
shall be made or taken by or on behalf of a ministry or portfolio for the purposes
of this Law unless that decision or action has been made, taken or agreed by the
chief officer of the ministry or portfolio.
(3) For the purpose of providing outputs or carrying on other activities that
are within its nature and scope of activities and that it is authorised to provide or
carry on, a ministry or portfolio may, subject to subsections (1) and (2) (a) earn entity revenue by providing outputs;
(b) enter into agreements with entities or individuals other than the
Governor in Cabinet for the supply of specified outputs for
amounts to be specified in the agreements;
(c) subject to regulations made by the Financial Secretary under
section 35, purchase, and incur entity expenses in relation to,
inputs on such terms and conditions as its chief officer may
authorise;
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Public Management and Finance Law (2005 Revision)
(d) subject to regulations made by the Governor in Cabinet on the
advice of the Financial Secretary under section 35, acquire entity
assets on such terms and conditions as its chief officer may
authorise provided that those assets are to be used in the
production of existing outputs;
(e) subject to regulations made by the Governor in Cabinet on the
advice of the Financial Secretary under section 35, dispose of its
entity assets on such terms and conditions as its chief officer may
authorise;
(f) retain such part of its net operating surplus as is determined by
the Financial Secretary; and
(g) determine and operate its own management and production
systems.
40. (1) The chief officer of a ministry or portfolio may only delegate his duties
and powers under this Law to another public officer in his ministry or portfolio,
in accordance with this section.
(2) Unless the terms and conditions of the delegation otherwise provide, a
person to whom duties or powers are delegated by a chief officer under this
section may, in turn, delegate those duties or powers to any person to whom those
duties or powers could have been delegated under subsection (1).
(3) A delegation under this section may be made to a specified person or
person of a specified group or to the holder or holders for the time being of a
specified office or offices.
(4) A delegation under this section (a) shall be in writing;
(b) may be made on such terms and conditions as the delegant thinks
fit; and
(c) may be revoked at any time by written notice from the delegant to
the delegate.
(5) Except to the extent that the terms and conditions of the delegation
otherwise provide, a person to whom any duties and powers are delegated under
this section may perform those duties and powers in the same manner and with
the same effect as if they have been conferred on the person directly and not by
delegation.
(6) No delegation under this section shall affect or prevent the
performance of any of the duties and powers of the delegant, nor shall any such
delegation affect the responsibility of that person for the actions of the delegate.
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officer
Public Management and Finance Law (2005 Revision)
(7) Any delegation under this section, until it is revoked, shall continue in
force, notwithstanding that the delegant has ceased to hold office as such, and
shall continue to have effect as if made by the successor or successors of the
delegant.
Further duties and
powers of, and
prohibitions on,
ministries and portfolios
41. (1) A ministry or portfolio shall not (a)
do anything that is inconsistent with its annual budget statement
under section 42 or any direction given to it by the Financial
Secretary under section 36;
(b) incur, in any financial year, entity expenses exceeding in total its
entity revenue in that year, unless otherwise agreed in writing by
the Financial Secretary;
(c) borrow or lend money;
(d) permit any of its bank accounts to be overdrawn;
(e) give any mortgage or other security or any guarantee; or
(f) invest in an equity or debt security.
(2) A ministry or portfolio shall only use the centralised accounting
information system to record its entity financial transactions and shall not use any
other accounting information system except with the written permission of the
Financial Secretary.
(3) A ministry or portfolio (a)
subject to paragraph (c), may only use the centralised banking
system;
(b) as part of the centralised banking system, may establish and
operate one or more accounts (i) at such bank or banks; and
(ii) on such terms and conditions,
as the chief officer of the Portfolio of Finance and Economics
may agree, or specify, in writing; and
(c) shall not establish or operate any bank accounts outside the
centralised banking system without the written approval of the
Financial Secretary.
(4) All money relating to an entity financial transaction shall be paid into
or out of a bank account established and operated by it in accordance with
subsection (3).
(5) A ministry or portfolio shall pay to the Portfolio of Finance and
Economics for each financial year a charge for the use of the equity invested by
the Governor in Cabinet in the entity.
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Public Management and Finance Law (2005 Revision)
(6) The capital charge shall be the amount arrived at by applying the
capital charge rate determined by the Financial Secretary under section 32(g) to
the net worth of the entity reported in the balance sheet of the entity.
(7) A ministry or portfolio shall pay the capital charge twice yearly and in
accordance with the dates and process established in any regulations made by the
Financial Secretary under section 35(f).
(8) A ministry or portfolio shall allocate the capital charge to the cost of its
outputs along with other input costs.
(9) In subsections (6), (7) and (8) “capital charge” means the charge referred to in subsection (5).
Performance Specification and Reporting
42. (1) The chief officer of a ministry or portfolio shall prepare and execute an
annual budget statement with the Governor in Cabinet in respect of each financial
year in accordance with this section.
(2) Every annual budget statement shall contain (a)
a specification of all the outputs the Governor in Cabinet is to
purchase from the ministry or portfolio including, for each
output(i) a description of the output to be purchased;
(ii) the quantity of each output to be purchased;
(iii) the quality of each output to be purchased;
(iv) the delivery dates for each output to be purchased;
(v) the place of delivery of each output to be purchased;
(vi) the price to be paid for each output to be purchased;
(vii) the evidence of delivery to be provided for each output to be
purchased; and
(viii) the payment schedule;
(b) details of the ownership performance to be achieved during the
year including (i) a description of the nature and scope of the activities of the
ministry or portfolio during that year;
(ii) the strategic goals and objectives of the ministry or portfolio
for that year and the following two years;
(iii) ownership performance targets of the ministry or portfolio
for the year, including the targets for those aspects of
ownership performance set out in the Fifth Schedule; and
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Annual budget statement
Public Management and Finance Law (2005 Revision)
(iv) forecast financial statements of the ministry or portfolio for
the year, which shall (I) be consistent with the forecast financial
statements in the annual plan and estimates; and
(II) contain the statements and information set out in
the Second Schedule;
(c) the amount of any equity investment by the Governor in Cabinet
in the ministry or portfolio planned for the year; and
(d) the amount of any withdrawal of any equity investment in the
ministry or portfolio by the Governor in Cabinet planned for the
year.
(3) The draft annual budget statement for a financial year shall be (a)
prepared in accordance with the timetable established each year
by the Governor in Cabinet in accordance with section 17;
(b) available for review by the Governor in Cabinet as part of the
Governor in Cabinet collective review phase of the budget
process in accordance with section 20; and
(c) presented to the Legislative Assembly by the relevant minister or
official member at the same time as the annual plan and estimates
for that financial year are presented in accordance with section
24(1).
(4) The finalised annual budget statement shall be (a)
prepared immediately the legislative review phase of the budget
process has been completed in accordance with section 21;
(b) signed by the chief officer and by the following persons on behalf
of the Governor in Cabinet (i) in the case of the annual budget statement of the Portfolio of
Internal and External Affairs, the Chief Secretary;
(ii) in the case of the annual budget statement of the Portfolio of
Legal Affairs, the Attorney-General or, where the AttorneyGeneral is the chief officer, the Governor;
(iii) in the case of the annual budget statement of the Portfolio of
Finance and Economics, the Financial Secretary; and
(iv) in the case of the annual budget statement of a ministry, the
relevant minister; and
(c) presented to the Legislative Assembly by the relevant minister or
official member on the next sitting day after it has been signed.
(5) As soon as the draft annual budget statement or the finalised annual
budget statement is presented to the Legislative Assembly it shall be a public
document, and the relevant chief officer shall provide a copy to any person
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Public Management and Finance Law (2005 Revision)
requesting one on payment of a copying charge prescribed by regulations made
by the Financial Secretary.
(6) An annual budget statement may be amended by the Governor in
Cabinet during the financial year to which it relates provided that the price to be
paid for each output in the amended performance agreement is sufficient to
deliver the outputs required by the amended performance agreement.
(7) All amendments to an annual budget statement made under subsection
(6) shall be in writing and presented to the Legislative Assembly, and subsection
(5) shall apply to the amended annual budget statement.
43. (1) Not later than four weeks after the end of each of the first three
quarters in each financial year, a ministry or portfolio shall produce a quarterly
report on a cumulative basis for the quarter just ended and for any preceding
quarters in that financial year.
(2) The quarterly report shall report the performance of the ministry or
portfolio for the period covered by the report and compare it with that proposed
in the annual budget statement for that financial year and shall include (a)
a summary of the outputs purchased by the Governor in Cabinet
and delivered by the ministry or portfolio during that quarter and
any preceding quarters in that financial year on a cumulative
basis, including for each output (i) a description of the output;
(ii) the quantity of the output;
(iii) the quality of the output;
(iv) the delivery dates for the output;
(v) the place of delivery of the output; and
(vi) the price paid for the output;
(b) a summary of the ownership performance achieved during that
quarter and any preceding quarters in that financial year on a
cumulative basis, including the extent to which the targets set out
in the annual budget statement for each aspect of ownership
performance set out in the Fifth Schedule have been achieved;
and
(c) financial statements for that quarter and any preceding quarters in
that financial year on a cumulative basis which shall (i) be prepared on a basis consistent with the forecast financial
statements in the annual budget statement for that financial
year; and
(ii) contain the statements and information set out in the Third
Schedule.
39
Ministry or portfolio
quarterly report
Public Management and Finance Law (2005 Revision)
(3) The quarterly report shall be presented to the Governor in Cabinet for
review no later than four weeks after the end of each quarter.
(4) The quarterly report of each ministry or portfolio shall be presented to
the Legislative Assembly by the relevant minister or official member to review at
the same time as the Government quarterly report is presented in accordance with
section 28.
(5) As soon as the ministry or portfolio quarterly report is presented to the
Legislative Assembly it shall be a public document, and the relevant chief officer
shall provide a copy to any person requesting one on payment of a copying
charge prescribed by regulations made by the Financial Secretary.
Ministry or portfolio
annual report
44. (1) An annual report of a ministry or portfolio shall be presented to the
Governor in Cabinet for review within four calendar months after the end of each
financial year.
(2) The annual report shall set out the performance of the ministry or
portfolio and compare it with that set out in the annual budget statement
(including any amendments thereto) for that financial year and shall include (a)
(b)
(c)
(d)
(e)
an audited statement of outputs delivered, which summarises the
outputs purchased by the Governor in Cabinet and delivered by
the ministry or portfolio during the financial year, including for
each output (i) a description of the output;
(ii) the quantity of the output;
(iii) the quality of the output;
(iv) the delivery dates for the output;
(v) the place of delivery of the output; and
(vi) the price paid for the output;
a summary of the nature and scope of the activities of the
ministry or portfolio during the financial year;
a summary of the extent to which the strategic goals and
objectives of the entity for the financial year described in the
annual budget statement were achieved;
a summary of the ownership performance achieved during the
financial year for each aspect of ownership performance set out
in the Fifth Schedule; and
audited financial statements for the financial year which shall (i) be prepared on a basis consistent with the forecast financial
statements in the annual budget statement for that financial
year; and
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Public Management and Finance Law (2005 Revision)
(ii) contain the statements and information set out in the Fourth
Schedule.
(3) The statement of outputs delivered and the financial statements
referred to in subsection (2)(a) and (e) shall be prepared within two months of the
end of the financial year and submitted to the Auditor-General for auditing, and
the Auditor-General shall express an opinion within two months of receipt of the
financial statements.
(4) A ministry or portfolio shall prepare a statement reporting all executive
financial transactions administered by the ministry or portfolio and submit this to
the Auditor-General for auditing at the same time as it provides the financial
statements for audit in accordance with subsection (3).
(5) The annual report of each ministry or portfolio shall be presented by
the relevant minister or official member to the Legislative Assembly to review at
the same time as the Government annual report is presented in accordance with
section 29.
(6) As soon as the ministry or portfolio annual report has been presented
to the Legislative Assembly it shall be a public document, and the relevant chief
officer shall provide a copy to any person requesting one on payment of a
copying charge prescribed by regulations made by the Financial Secretary.
45. (1) The Complaints Commissioner shall be the chief officer of the Office
of the Complaints Commissioner and shall be accountable to the Legislative
Assembly for the performance of the Office of the Complaints Commissioner.
(2) Unless the context otherwise requires, Part IV shall apply in respect of
the Office of the Complaints Commissioner as if (a)
every reference to the Governor in Cabinet or a minister were a
reference to the committee of the Legislative Assembly
responsible for overseeing the performance of the Office of the
Complaints Commissioner, or if no such committee exists, the
Speaker; and
(b) every reference to a ministry were a reference to the Office of the
Complaints Commissioner.
(3) Notwithstanding sections 9, 19, 20, 22, 30 and 31, the committee of
the Legislative Assembly responsible for overseeing the performance of the
Office of the Complaints Commissioner, or if no such committee exists, the
Speaker, shall -
41
Application of Part IV to
Office of the Complaints
Commissioner
Public Management and Finance Law (2005 Revision)
(a)
be granted the appropriations relating to the Office of the
Complaints Commissioner;
(b) in respect of the Office of the Complaints Commissioner,
undertake the duties assigned to the Governor in Cabinet or a
minister under sections 19, 20(a) and (b), 22(a), 30 and 31;
(c) provide the Financial Secretary with the necessary information in
relation to the Office of the Complaints Commissioner to be
included in the annual plan and estimates and the Appropriation
Bill to be presented in accordance with section 24; and
(d) provide the Financial Secretary with the necessary information in
relation to the Office of the Complaints Commissioner to be
included in any supplementary annual plan and estimates and the
supplementary Appropriation Bill to be presented in accordance
with section 25.
(4) In carrying out its duties under this section the committee of the
Legislative Assembly responsible for overseeing the performance of the Office of
the Complaints Commissioner, or if no such committee exists, the Speaker shall (a)
make its decisions in accordance with the budget process
established by the Governor in Cabinet under section 17; and
(b) ensure that its decisions are consistent with the principles of
responsible financial management set out in section 14(3).
PART V - Statutory Authorities and Government Companies
Duties and Powers of Statutory Authorities and Government Companies
Duties of statutory
authorities and
government companies
46. (1) Subject to subsection (2), a statutory authority or government company
shall (a)
supply outputs that the Governor in Cabinet has agreed that it
will purchase from the statutory authority or government
company;
(b) supply outputs to entities or individuals other than the Governor
in Cabinet for payment and in accordance with agreements with
those entities or individuals; and
(c) achieve the ownership performance that it has agreed with the
Governor in Cabinet that it will achieve during the year.
(2) A statutory authority or government company shall not produce an
output during a financial year unless -
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Public Management and Finance Law (2005 Revision)
(a)
the output is within the nature and scope of the activities that are
set out in the annual ownership agreement of the authority or
company; and
(b) the Governor in Cabinet, or another entity or person has, by way
of formal agreement, agreed to pay for the full cost of the output
to be produced.
(3) In the event of any inconsistency between subsection (2) and the
operation of any other law, subsection (2) shall prevail to the extent of the
inconsistency.
47. (1) The board of a statutory authority or government company shall be
responsible for the performance of the authority or company including all its
subsidiary entities, including for ensuring that the authority or company -
Duties of board
(a)
delivers the outputs specified in the purchase agreement prepared
in accordance with section 49; and
(b) achieves the ownership performance specified in the ownership
agreement prepared in accordance with section 50.
(2) The board shall be responsible for appointing, and monitoring the
performance of, a chief officer.
(3) The board shall delegate to the chief officer, on such terms and
conditions as it thinks fit, the power to manage the statutory authority or
government company.
48. A government company or a subsidiary of a government company may not
form, acquire shares in or participate in any other transaction that will result in, a
body corporate becoming a subsidiary of the company, unless it has been
authorised to do so in writing by the Governor in Cabinet.
Acquisition and disposal
of subsidiaries
Performance Specification and Reporting
49. (1) A statutory authority or government company that is delivering outputs
that are being purchased by the Governor in Cabinet shall prepare and execute an
annual purchase agreement for the authority or company with the Governor in
Cabinet for each financial year in accordance with this section.
(2) A purchase agreement executed under subsection (1) shall specify all
the outputs the Governor in Cabinet is to purchase from the authority or
government company, including for each output (a) a description of the output to be purchased;
(b) the quantity of the output to be purchased;
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Annual purchase
agreement
Public Management and Finance Law (2005 Revision)
(c)
(d)
(e)
(f)
(g)
the quality of the output to be purchased;
the delivery dates for the output to be purchased;
the place of delivery of the output to be purchased;
the price to be paid for the output to be purchased;
the evidence of delivery to be provided for the output to be
purchased; and
(h) the payment schedule.
(3) The draft purchase agreement for a financial year shall be (a)
prepared in accordance with the timetable established each year
by the Governor in Cabinet in accordance with section 17;
(b) available for review by the Governor in Cabinet as part of the
Governor in Cabinet collective review phase of the budget
process in accordance with section 20; and
(c) presented to the Legislative Assembly by the relevant minister or
official member at the same time as the annual plan and estimates
for that financial year are presented in accordance with section
24(1).
(4) A finalised purchase agreement shall be (a)
prepared immediately the legislative review phase of the budget
process has been completed in accordance with section 21;
(b) signed by a member of the Governor in Cabinet on behalf of the
Governor in Cabinet and by the chairman on behalf of the board,
no later than the beginning of the financial year; and
(c) presented to the Legislative Assembly by the relevant minister or
official member on the next sitting day after it has been signed.
(5) As soon as the draft purchase agreement or the finalised purchase
agreement is presented to the Legislative Assembly it shall be a public document,
and the relevant authority or company shall provide a copy to any person
requesting one on payment of a copying charge prescribed by regulations made
by the Financial Secretary.
(6) A purchase agreement for an authority or company may be modified at
any time by agreement between the authority or company and the Governor in
Cabinet.
(7) All amendments to a purchase agreement made under subsection (6)
shall be in writing and presented to the Legislative Assembly, and subsection (5)
shall apply to the amended agreement.
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Public Management and Finance Law (2005 Revision)
50. (1) Each statutory authority and government company shall prepare an
annual ownership agreement for the authority or company for each financial year.
(2) An annual ownership agreement shall contain (a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
a description of the nature and scope of the activities of the
authority or company during that financial year;
the strategic goals and objectives of the authority or company for
that financial year and the following two financial years;
ownership performance targets of the authority or company for
the financial year, including the targets for those aspects of
ownership performance set out in the Fifth Schedule;
forecast financial statements of the company for the financial
year, which shall (i) be consistent with the forecast financial statements in the
annual plan and estimates for that financial year; and
(ii) contain the statements and information set out in the Second
Schedule;
details of any equity investment to be made by the Governor in
Cabinet in the authority or company planned for the financial
year;
details of any capital withdrawals to be made by the Governor in
Cabinet from the authority or company planned for the financial
year;
details of any dividends or profit distributions forecast to be paid
by the authority or company during the financial year;
details of any loans to the authority or company proposed to be
made by the Governor in Cabinet during the financial year; and
details of any guarantees relating to the authority or company
proposed to be made by the Governor in Cabinet during the
financial year.
(3) A draft ownership agreement for a financial year shall be (a)
prepared in accordance with the timetable established each year
by the Governor in Cabinet in accordance with section 17;
(b) available for review by the Governor in Cabinet as part of the
Governor in Cabinet collective review phase of the budget
process in accordance with section 20; and
(c) presented to the Legislative Assembly by the relevant minister or
official member at the same time as the annual plan and estimates
for that financial year is presented in accordance with section
24(1).
(4) A finalised ownership agreement shall be 45
Annual ownership
agreement
Public Management and Finance Law (2005 Revision)
(a)
prepared immediately the legislative review phase of the budget
process has been completed in accordance with section 21;
(b) signed by a member of the Governor in Cabinet on behalf of the
Governor in Cabinet and by the chairman on behalf of the board,
no later than the beginning of the financial year; and
(c) presented to the Legislative Assembly by the relevant minister or
official member on the next sitting day after it has been signed.
(5) As soon as the draft ownership agreement or the finalised ownership
agreement is presented to the Legislative Assembly it shall be a public document,
and the relevant authority or company shall provide a copy to any person
requesting one on payment of a copying charge prescribed by regulations made
by the Financial Secretary.
(6) An annual ownership agreement for an authority or company may be
modified at any time by agreement between the authority or company and the
Governor in Cabinet.
(7) All amendments to an annual ownership agreement made under
subsection (6) shall be in writing and presented to the Legislative Assembly, and
subsection (5) shall apply to the amended plan.
Half -yearly report
51. (1) Not later than four weeks after the end of the first half of each financial
year, a statutory authority and government company shall produce a half-yearly
report.
(2) The half-yearly report shall report the performance of the authority or
company and shall compare it with that proposed in the ownership agreement for
that financial year and shall include (a)
a summary of the nature and scope of the activities of the
authority or company during that financial half-year;
(b) a summary of the extent to which the ownership performance
targets set out in the authority’s or company’s annual ownership
agreement for that financial year have been achieved in that
financial half-year;
(c) financial statements of the authority or company for the financial
half-year, which shall (i) be prepared on a basis consistent with the forecast financial
statements in the authority’s or company’s annual
ownership agreement for that financial year; and
(ii) contain the statements and information set out in the Third
Schedule;
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Public Management and Finance Law (2005 Revision)
(d) the amount of any equity investment made by the Governor in
Cabinet into the authority or company during the financial halfyear;
(e) the amount of any capital withdrawals made by the Governor in
Cabinet from the authority or company during the financial halfyear;
(f) the amount of any dividends or profit distributions paid by the
authority or company during the financial half-year;
(g) the amount of any loans to the authority or company by the
Governor in Cabinet during the financial half-year; and
(h) details of any guarantees relating to the authority or company
made by the Governor in Cabinet during the financial half-year.
(3) The half-yearly report shall be presented to the Governor in Cabinet
for review no later than four weeks after the end of the half-year.
(4) The half-yearly report of each authority or company shall be presented
for review to the Legislative Assembly by the relevant minister or official
member at the same time as the next Government quarterly report is presented in
accordance with section 28.
(5) As soon as the half-yearly report is tabled it shall be a public
document, and the relevant authority or company shall provide a copy to any
person requesting one on payment of a copying charge prescribed by regulations
made by the Financial Secretary.
52. (1) In respect of each financial year, each statutory authority and
government company shall prepare an annual report.
(2) An annual report shall report the performance of the authority or
company and compare it with that proposed in the ownership agreement for that
financial year and shall include (a)
a summary of the nature and scope of the activities of the
authority or company during that financial year;
(b) a summary of the extent to which the strategic goals and
objectives of the authority or company described in the annual
ownership agreement were achieved;
(c) a summary of the extent to which the ownership performance
targets set out in the authority’s or company’s annual ownership
agreement for that financial year have been achieved in that
financial year;
(d) audited financial statements of the authority or company for the
financial year, which shall 47
Statutory authority or
government company
annual report
Public Management and Finance Law (2005 Revision)
(i) be prepared on a basis consistent with the forecast financial
statements in the authority’s or company’s annual
ownership agreement for that financial year; and
(ii) contain the statements and information set out in the Fourth
Schedule;
(e) the amount of any equity investment made by the Governor in
Cabinet in the authority or company during the financial year;
(f) the amount of any capital withdrawals made by the Governor in
Cabinet from the authority or company during the financial year;
(g) the amount of any dividends or profit distributions paid by the
authority or company during the financial year;
(h) the amount of any loans to the authority or company by the
Governor in Cabinet during the financial year; and
(i) details of any guarantees relating to the authority or company
made by the Governor in Cabinet during the financial year.
(3) The financial statements referred to in subsection (2) shall be prepared
within two months of the end of the financial year and submitted to the AuditorGeneral for auditing, and the Auditor-General shall express an opinion within two
months of receipt of the financial statements.
(4) The annual report shall be presented to the Governor in Cabinet by the
relevant minister or official member no later than four months after the end of the
financial year.
(5) The annual report of each authority or company shall be presented to
the Legislative Assembly four months and two weeks after the end of the
financial year or on the first sitting day thereafter by the relevant minister or
official member.
(6) As soon as the annual report is tabled it shall be a public document,
and the relevant authority or company shall provide a copy to any person
requesting one on payment of a copying charge prescribed by regulations made
by the Financial Secretary.
Exclusion of
commercially sensitive
matters
53. An annual ownership agreement, half-yearly report or annual report for a
statutory authority or government company need not include a matter that is of a
commercially sensitive nature to the extent that the Financial Secretary so agrees.
PART VI - Portfolio of Finance and Economics
Duties of Portfolio of
Finance and Economics
54. The Portfolio of Finance and Economics shall (a)
prepare the economic forecasts required by sections 23 and 26;
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Public Management and Finance Law (2005 Revision)
(b) co-ordinate the Government’s budget process established under
section 17;
(c) co-ordinate the preparation of the strategic policy statement
which is to be prepared in accordance with section 18;
(d) co-ordinate the preparation of the annual plan and estimates
required by section 20;
(e) prepare the pre-election economic and financial update required
by section 26;
(f) prepare the forecast financial statements for the core government
and the entire public sector required by sections 24(2) and 26(2);
(g) prepare the quarterly financial statements and annual financial
statements for the core government and the entire public sector
required by sections 28(2)(b) and 29(2)(c);
(h) establish, operate and manage a centralised accounting
information system for the core government;
(i) establish, operate and manage the centralised banking system;
(j) establish, operate and manage the executive bank account;
(k) set accounting policies, which shall be consistent with generally
accepted accounting practice, for all financial information
required by this Law;
(l) collect the capital charge required to be paid by ministries,
portfolios, the Office of the Complaints Commissioner and the
Audit Office under section 41(5);
(m) monitor the output delivery and the ownership performance of
ministries, portfolios, the Office of the Complaints
Commissioner, the Audit Office, statutory authorities and
government companies;
(n) review the management systems operated by ministries,
portfolios, statutory authorities and government companies for
compliance with the requirements of this Law and regulations;
and
(o) if requested to do so by a ministry, portfolio, the Office of the
Complaints Commissioner or the Audit Office, provide
accounting and financial services to the entity and recover the
actual cost of provision of those services from the entity to which
they are provided.
55. (1) There shall be an executive bank account, which shall consist of (a)
a main executive bank account or accounts which shall be
operated by the Portfolio of Finance and Economics; and
(b) such subsidiary executive bank accounts as the chief officer of
the Portfolio of Finance and Economics shall determine and
which may be operated by a ministry, a portfolio, the Office of
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Executive bank account
Public Management and Finance Law (2005 Revision)
the Complaints Commissioner or the Audit Office in accordance
with a written delegation from the chief officer of the Portfolio of
Finance and Economics.
(2) Money received or paid in respect of executive financial transactions
shall be paid into or out of the executive bank account.
(3) Trust assets consisting of money, and money received or paid in
respect of entity financial transactions, may not be paid into or out of the
executive bank account.
(4) The executive bank account shall be operated (a)
as part of the centralised banking system but separately from the
bank accounts of ministries, portfolios, the Office of the
Complaints Commissioner and the Audit Office; and
(b) at such bank, whether within or outside the Islands, and on such
terms and conditions, as the Financial Secretary may approve.
Power to request
information for
Government reporting
56. (1) For the purposes of preparing the government budgets and reports
required by this Law, the Financial Secretary may request from members of the
Governor in Cabinet, ministries, portfolios, the Office of the Complaints
Commissioner, the Audit Office, statutory authorities, government companies or
any non-government entity receiving money from the Governor in Cabinet, such
relevant information as the chief officer of the Portfolio of Finance and
Economics may need to prepare those budgets or reports, and the person or entity
concerned shall supply the information requested by the date and in the format
requested by the Financial Secretary.
(2) For the purposes of this section, whether information is relevant or not
shall be determined by the Governor.
Powers of Internal Audit
Unit
57. (1) For the purposes of reviewing the financial management systems
operated by ministries, portfolios, the Office of the Complaints Commissioner,
the Audit Office, statutory authorities and government companies under section
53(n), the Director of Internal Audit shall have the right (a)
of access to all information held by any ministry, portfolio,
statutory authority or government company, the Office of the
Complaints Commissioner or the Audit Office;
(b) to take copies of any information referred to in paragraph (a);
(c) to require explanations from officers or employees of entities
subject to review; and
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Public Management and Finance Law (2005 Revision)
(d) of access to all premises occupied by any ministry, portfolio,
statutory authority or government company, the Office of the
Complaints Commissioner or the Audit Office.
(2) The Director of Internal Audit may direct in writing a public officer or
an employee of a statutory authority or government company that is subject to
review to provide information to the Director of Internal Audit within the time
and in the manner specified in the direction.
PART VII - Audit Office
Auditor-General
58. (1) In the performance of his duties or exercise of his powers under this or
any other law, the Auditor-General shall not be subject to the direction or control
of any person.
Independence of
Auditor-General
(2) The Auditor-General shall not be required to undertake any duty which
is, in his opinion, incompatible with the duties imposed on him by this or any
other law.
(3) The Auditor-General shall not, whilst he holds that office, hold any
other paid office or employment.
(4) If the Auditor-General is removed from office under section 55B of the
Constitution, a full statement of the circumstances shall be made at the first
opportunity to the Legislative Assembly, and the Auditor-General shall have the
right of reply which shall be exercised by way of written statement which shall be
tabled in the Legislative Assembly by the Speaker.
(5) The Governor shall specify in writing the amount of the annual salary
of the Auditor-General, and the Auditor-General shall be entitled to the salary so
specified.
59. If in the opinion of the Governor, the Auditor-General is unable to perform
the duties of his office during any period for any reason, the Governor shall
appoint another person to act as the Auditor-General during that period.
Appointment of acting
Auditor-General
Powers and Duties of Auditor-General
60.
The Auditor-General shall (a) conduct audits of the annual financial statements in respect of 51
Powers and duties of
Auditor-General
Public Management and Finance Law (2005 Revision)
(b)
(c)
(d)
(e)
Reporting by AuditorGeneral
(i) the core government and the entire public sector referred to
in section 29(2)(c); and
(ii) every ministry, portfolio, statutory authority and
government company referred to in sections 44(2)(e) and
52(2)(d);
conduct audits of the summary referred to in section 29(2)(b), the
schedule referred to in section 29(2)(d) and the statement referred
to in section 44(2)(a);
on his own initiative or at the request of the Legislative Assembly
or of any of its committees or subcommittees, conduct
investigations into (i) the management of executive financial transactions;
(ii) the financial management of any ministry, portfolio,
statutory authority or government company or the Office of
the Complaints Commissioner; and
(iii) the economy, efficiency and effectiveness with which any
ministry, portfolio, the Office of the Complaints
Commissioner, statutory authority or government company
has used its resources in discharging its functions;
at the request of the Legislative Assembly or of one of its
committees or subcommittees, provide advice and assistance to
the Legislative Assembly or to any of its committees or
subcommittees; and
if he is authorised in writing to do so by the Governor in the
public interest, conduct investigations into the financial
management or affairs of persons, companies and bodies other
than those referred to in paragraphs (a) to (d).
61. The Auditor-General shall prepare and (a)
deliver to the entity whose financial statements, summary,
schedule or statement have been audited (i) an audit opinion in relation to each audit referred to in
section 60(a) and (b); and
(ii) in relation to each audit referred to in subparagraph (i) a
summary of the issues resulting from each audit that he
wishes to bring to the attention of the entity whose financial
statements, summary, schedule or statement have been
audited; and
(b) present to the Legislative Assembly (i) at least one general report in each financial year on (I) the results of audits referred to in paragraph (a);
and
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Public Management and Finance Law (2005 Revision)
(II) matters that he wishes to bring to the attention of
the Legislative Assembly; and
(ii) a report on each investigation requested by the Legislative
Assembly or any of its committees or subcommittees and
undertaken in accordance with section 60(c).
62. The Auditor-General may omit particular information from a report to the
Legislative Assembly if -
Reporting sensitive
information
(a)
he is of the opinion that its disclosure in the report would be
contrary to the public interest because it could (i) have a serious adverse impact on the commercial interests
of any person;
(ii) reveal trade secrets of any person;
(iii) prejudice the investigation of an alleged contravention of a
law;
(iv) prejudice the fair trial of a person; or
(v) prejudice relations between the Islands and another country;
or
(b) the Governor has certified that the disclosure of the information
would be contrary to the public interest.
63. The Auditor-General shall ensure that (a)
all audits and investigations carried out by him, or on his behalf,
are carried out (i) in a competent fashion and with due care; and
(ii) in accordance with the International Standards on Auditing;
and
(b) the persons carrying out such an audit or investigation are
independent of the entity being audited or investigated.
64. (1) For the purposes of carrying out an audit or an investigation other than
under section 60(e), the Auditor-General or any person authorised by him for that
purpose has (a)
the right of access to all information held by any public officer or
employee of a statutory authority or government company;
(b) the right to take copies of any information referred to in
paragraph (a);
(c) the right to require explanations from officers or employees of
entities subject to audit or investigation; and
(d) the right of access to all premises occupied by any ministry,
portfolio, the Office of the Complaints Commissioner, statutory
authority or government company.
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Obligations of AuditorGeneral
Investigatory powers of
Auditor-General
Public Management and Finance Law (2005 Revision)
(2) The Auditor-General may direct in writing a public officer or an
employee of a statutory authority or government company subject to audit or to
an investigation other than under section 60(e), to (a)
provide information to the Auditor-General within the time and in
the manner specified in the direction;
(b) attend before the Auditor-General at a specified time and place
and answer questions; and
(c) grant access to the Auditor-General or to any person authorised
by the Auditor-General, to any premises occupied by the entity.
(3) For the purposes of carrying out any investigation under section 60(e),
the Auditor-General shall, in relation to the investigation, have the powers
provided by subsections (1) and (2), and those powers shall also apply to all
relevant persons, companies and bodies but shall not include a right of access to
information held by a member of the Governor in Cabinet or a member of the
Legislative Assembly.
(4) Where a person fails to comply with a direction given under subsection
(3) within three days from the date of the direction or such longer period as the
Auditor-General may permit, the Auditor-General may apply to a court of
summary jurisdiction for an order requiring the person to comply with the
requirement or direction.
(5) Where, in connection with a direction given under subsection (3), the
Auditor-General considers it necessary to examine a person on oath, the AuditorGeneral may apply to a court of summary jurisdiction to have that person
examined by the court and to have the results of that examination sent to the
Auditor-General.
(6) The court shall process an application under subsection (5) and send
the results of the examination to the Auditor-General.
(7) Where a person complies with a direction under subsection (3), an
order under subsection (4) or gives evidence under subsection (5), such
compliance shall not be treated as a breach of any restriction upon disclosure of
information by or under any law and shall not give rise to any civil liability.
Appointment of
contractors
65. (1) The Auditor-General may engage a person under contract to carry out,
or assist in the carrying out of, any audit or investigation that the Auditor-General
is required to or may carry out.
(2) With the agreement of the Auditor-General, a statutory authority or
government company may engage a person under subsection (1) to carry out the
audit of its annual financial statements.
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(3) Any person who is currently engaged, or who has within the previous
twelve months been engaged, under section 69 as the auditor of the AuditorGeneral may not be engaged under subsection (1).
(4) The Auditor-General may delegate in writing all or any of the AuditorGeneral’s powers to a person engaged under this section, and section 40 applies,
with all necessary modifications, to any such delegation as if every reference in
those subsections to a chief officer were a reference to the Auditor-General.
Accountability Arrangements in Relation to Audit Office
66. (1) The Auditor-General shall be the chief officer of the Audit Office.
Audit Office
(2) The Auditor-General shall be accountable to the Legislative Assembly
for the performance of the Audit Office.
67. (1) Unless the context otherwise requires, Part IV shall apply in respect of
the Audit Office as if (a)
every reference to the Governor in Cabinet or a minister were a
reference to the Public Accounts Committee; and
(b) every reference to a ministry were a reference to the Audit
Office.
(2) Notwithstanding sections 9, 19, 20, 22, 30 and 31, the Public Accounts
Committee shall (a) be granted the appropriations relating to the Audit Office;
(b) in respect of the Audit Office, undertake the duties assigned to
the Governor in Cabinet or a minister under sections 19, 20(a)
and (b), 22(a), 30 and 31;
(c) provide the Financial Secretary with the necessary information in
relation to the Audit Office to be included in the annual plan and
estimates and the Appropriation Bill to be presented in
accordance with section 24; and
(d) provide the Financial Secretary with the necessary information in
relation to the Audit Office to be included in any supplementary
annual plan and estimates and the supplementary Appropriation
Bill to be presented in accordance with section 25.
(3) In carrying out its duties under this section the Public Accounts
Committee shall (a)
make its decisions in accordance with the budget process
established by the Governor in Cabinet under section 17; and
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Audit Office
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(b) ensure that its decisions are consistent with the principles of
responsible financial management set out in section 14(3).
Fees and charges
68. (1) The Audit Office shall obtain its entity revenue by charging (a)
the Governor in Cabinet, ministries, portfolios, statutory
authorities and government companies for (i) audits conducted under section 60(a) and (b); and
(ii) investigations conducted under section 60(e) where the
Governor determines that such investigations shall be paid
for by Governor in Cabinet;
(b) the Legislative Assembly for audits, investigations or assistance
and advice requested or agreed by it under section 60(c) and (d);
and
(c) the persons, companies or bodies investigated under section 60(e)
for the investigations conducted, where paragraph (a)(ii) does not
apply.
(2) The charge to be made by the Audit Office under subsection (1) shall
be a fair price.
(3) In this section “fair price” means (a)
the amount for which the output would be purchased and sold
between knowledgeable and willing parties in an arm’s length
transaction; or
(b) where an amount cannot be determined under paragraph (a), the
cost of producing that output calculated on the basis of a
complete allocation of input costs to outputs.
Annual report of Audit
Office
69. (1) In accordance with section 44, the Audit Office shall prepare an annual
report on the activities of the Audit Office for the year.
(2) The statement of outputs delivered and the annual financial statements
of the Audit Office shall be audited by an entity or individual who is independent
of the Auditor-General (called in this section the “independent auditor”).
(3) The independent auditor shall (a)
be an entity or individual who is, in the opinion of the Public
Accounts Committee, suitably qualified and experienced to be the
independent auditor; and
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Public Management and Finance Law (2005 Revision)
(b) be appointed by the Public Accounts Committee for a term not
exceeding three years and on such other terms and conditions as
the Public Accounts Committee determines.
(4) For the purpose of conducting an audit of the Audit Office, the
independent auditor shall have (a) the obligations under section 63; and
(b) the powers under section 64;
(5) Section 44 shall apply in respect of the Audit Office as if every
reference in that section to the Auditor-General were a reference to the
independent auditor.
PART VIII - General Provisions
Trust Assets
70. (1) All trust assets shall be accounted for separately from executive assets
and entity assets.
Trust assets to be
separately accounted for
(2) The Financial Secretary shall manage all trust assets and shall have all
such powers as are necessary for this purpose.
(3) Any trust asset received by a ministry, portfolio, the Office of the
Complaints Commissioner or the Audit Office shall be immediately transferred to
the Financial Secretary.
(4) The Financial Secretary may charge fees in accordance with a scale
prescribed by regulations for the management of trust assets which shall be
deducted from the trust assets or from income from those assets when returned to
the beneficiary, provided that the fee charged shall be no more than the income
earned on those trust assets.
71. (1) There shall be established at one or more banks approved by the
Financial Secretary, one or more accounts to be known as trust bank accounts.
(2) Trust bank accounts shall be operated only by the Financial Secretary.
(3) All receipts of trust assets consisting of money shall be paid into a trust
bank account.
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Trust bank accounts
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Deposit of trust assets
consisting of money
72. (1) The Financial Secretary may, for such periods and on such terms and
conditions as he thinks fit, place trust assets, consisting of money, on deposit with
any bank.
(2) No person shall have a right of action against the Financial Secretary
in respect of any deposit or non-deposit of any trust assets consisting of money.
Transfer of trust assets
73. When any trust asset is returned to a beneficiary by the Financial Secretary,
the amount of income, if any, certified by the Financial Secretary to have been
earned thereon shall be added to the trust asset.
Unclaimed trust assets
74. (1) Any trust asset that shall be unclaimed for a period of six years after
having become transferable to any person entitled to the asset shall, together with
any income payable in respect of the asset, be treated as an unclaimed trust asset.
(2) An unclaimed trust asset in the form of money shall be paid into the
executive bank account and recorded as executive revenue.
(3) If any person establishes, to the satisfaction of the Financial Secretary
or his nominee, a claim to any money that has been paid into the executive bank
account in accordance with subsection (2), that amount, together with such
interest, if any, as the Financial Secretary may approve, shall be paid to the
claimant and recorded as an executive expense without further appropriation than
this section.
(4) Where any money paid to any claimant under subsection (3) is
afterwards claimed by any other person, neither the Government nor the Financial
Secretary nor his nominee shall be liable to that other person by reason of having
paid the money to the first claimant.
(5) An unclaimed trust asset that is not in the form of money shall be sold
on such terms and conditions as the Financial Secretary thinks fit and the
proceeds of sale shall be dealt with in accordance with subsections (2), (3) and
(4).
(6) In the event of any inconsistency between this section and the
operation of any other law, this section shall prevail to the extent of the
inconsistency.
Bona vacantia
75. (1) Where any asset, except an interest in land, is vested in the Crown as
bona vacantia, the Financial Secretary (or any person appointed by him for this
purpose) may on behalf of the Crown exercise any power or right (including any
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Public Management and Finance Law (2005 Revision)
power of disposal), and perform any obligation, in respect of or in connection
with the asset that could be exercised or performed by the Crown.
(2) If any person claims any asset which belongs to the Crown as bona
vacantia, and establishes a claim to the satisfaction of the Financial Secretary (or
any entity appointed by him under subsection (1)), the asset shall be transferred to
that person without further appropriation.
(3) Where any asset transferred to any claimant under subsection (2) is
afterwards claimed by any other person, neither the Government, nor the
Financial Secretary nor a person appointed under subsection (1) shall be liable to
that other person by reason of having transferred the asset to the first claimant.
Offences
76. Whoever, without reasonable excuse -
Offences and penalties
(a)
fails, after a request in writing, to (i) produce any information that is in that person’s possession
or under that person’s control;
(ii) allow access to premises; or
(iii) provide answers or explanations,
when required to do so by or by regulations made under this Law;
or
(b) makes any statement or gives any information required by, or by
regulations made under, this Law, knowing it to be false or
misleading,
is guilty of an offence and liable on summary conviction to a fine of ten thousand
dollars and to imprisonment for six months, or on conviction on indictment to a
fine of one hundred thousand dollars and to imprisonment for five years, and if
the offence of which he is convicted is continued after conviction he is guilty of a
further offence and liable to a fine of ten thousand dollars for every day on which
the offence is so continued.
77. (1) Where an offence under, or under any regulation made under, this Law
which has been committed by a body corporate is proved to have been committed
with the consent or connivance of, or to be attributable to any neglect on the part
of, any director, manager, secretary or other similar officer of the body corporate,
or any person who was purporting to act in any such capacity, he as well as the
body corporate is guilty of that offence and is liable to be proceeded against and
punished accordingly.
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corporations
Public Management and Finance Law (2005 Revision)
(2) Where the affairs of a body corporate are managed by its members,
subsection (1) shall apply in relation to the acts and defaults of a member in
connection with his functions of management as if he were a director of the body
corporate.
Miscellaneous Provisions
Law not to affect the
independence of
Governor
78. (1) Nothing in this Law shall affect the constitutional functions or
independence of the Governor, his office or support staff.
(2) Nothing in this Law shall be construed so as to define the Governor as
a ministry or portfolio or to require him to comply with any of the provisions of
Parts III, IV or V.
(3) The Office of the Governor shall not be required to comply with
sections 42, 43 and 44, but the outputs and ownership performance of the Office
of the Governor shall be included in the annual budget statement and the
quarterly and annual reports of the Portfolio of Internal and External Affairs
prepared in accordance with those sections.
(4) Notwithstanding subsection (3), the chief officer of the Portfolio of
Internal and External Affairs shall not be accountable, or deemed to be
accountable, for the activities or the financial performance of the office of the
Governor.
Law not to affect
constitutional
independence of
Attorney-General
79. (1) Nothing in this Law shall affect the constitutional functions or
constitutional independence of the Attorney-General.
(2) This Law shall apply to the Portfolio of Legal Affairs, except that –
(a)
in the annual budget statement (i) in relation to the outputs of the Portfolio that relate to the
functions of the Attorney-General specified in the
Constitution, the specifications set out in section 42(2)(a)(i)
to (iv) shall be contained in the annual budget statement but
shall be subject to agreement with the Attorney-General;
(ii) in relation to the outputs of the Portfolio that relate to the
functions of the Attorney-General specified in the
Constitution, the specifications set out in section 42(2)(a)(v)
to (viii) shall be contained in the annual budget statement
but shall be subject to agreement with the Governor in
Cabinet; and
(iii) in relation to the other outputs of the Portfolio, the
specifications set out in section 42(2)(a) shall be contained
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in the annual budget statement and shall be subject to
agreement with the Governor in Cabinet; and
(b) the chief officer shall be accountable to the Attorney-General for
the delivery of the specifications provided for in paragraph (a)(i)
and shall be accountable to the Governor in Cabinet for the
delivery of the specifications provided for in paragraph (a)(ii) and
(iii).
80. (1) Nothing in this Law shall affect the constitutional functions or
constitutional independence of (a) the President or any Judge of the Court of Appeal; or
(b) the Chief Justice or any Judge of the Grand Court.
Law not to affect
constitutional
independence of
Judiciary
(2) Nothing in this Law shall be construed so as to define the judiciary as a
ministry or portfolio or to require the judiciary to comply with Parts III, IV or V.
(3) This Law shall apply to the judicial administration except that the
outputs and the details of the ownership performance specified in the annual
budget statement of the judicial administration shall be specified so as to ensure
that they do not impinge on the constitutional functions or constitutional
independence of the judiciary.
81. Nothing in this Law shall affect the constitutional functions or constitutional
independence of the Complaints Commissioner.
Transitional Arrangements, Repeals and Consequential Amendments
82. (1) The following bank accounts existing and operated by the Treasury
immediately prior to the 7th April, 2003 are deemed to be executive bank
accounts established in accordance with section 54(j) (a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
current account;
Cayman Brac account;
US dollar call account;
US dollar account;
pound sterling accounts;
capital development fund accounts;
payroll account; and
revenue account.
(2) The following bank accounts existing and operated by a ministry or
portfolio prior to the 7th April, 2003 are deemed to be entity bank accounts
established in accordance with section 41(3) (a)
Commissioner of Police account;
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Law not to affect
constitutional
independence of
Complaints
Commissioner
Transition of accounts
Public Management and Finance Law (2005 Revision)
(b) the bank accounts operated by the United Kingdom
representative;
(c) the bank accounts operated by the Department of Tourism
overseas offices; and
(d) the bank accounts of the London shipping office.
(3) The balance of each imprest account recorded by the Treasury at the
7th April, 2003 shall be recorded as a cash balance in the opening balance sheet
of the relevant ministry or portfolio.
(4) All fund balances, public debt, fixed deposit and investments, advance
accounts, deposit accounts, investment undertakings, self-financing loans, loans
recoverable and arrears of revenue recorded by the Treasury at the 7th April,
2003, shall be transferred and appropriately classified in accordance with
generally accepted accounting practice to the executive balance sheet or the
balance sheet of the relevant ministry, portfolio, statutory authority or
government company.
(5) All physical assets of the core government and any financial assets or
liabilities of the core government not referred to in subsections (1) to (4) that
exist at the 7th April, 2003 are to be recorded in the opening balance sheets of the
executive and ministries, portfolios and the Audit Office as follows (a) all Crown land is to be recorded on the executive balance sheet;
(b) all debtors relating to entity revenue and all creditors relating to
entity expenses are to be allocated to the relevant ministry,
portfolio or Audit Office balance sheet; and
(c) all assets used by a ministry a portfolio or the Audit Office to
produce its outputs, are to be recorded on the relevant ministry,
portfolio or Audit Office balance sheet, except to the extent that
the Financial Secretary declares this shall not occur in relation to
a specific asset; and
(d) all other assets and liabilities not covered by paragraphs (a) to (c)
are to be recorded on the executive balance sheet.
Transition to responsible
financial management
83. (1) If at the time that section 14 came into force, the financial performance
and financial position of the core government was not consistent with the
principles of responsible financial management specified in section 14, the
Governor in Cabinet shall ensure that the results of the strategic phase specified
in section 18 and the detailed planning and budgeting phase specified in section
19 are such that (a)
total core government revenue less total core government
expenses (as defined in section 14(3)(a)) is positive from the next
financial year;
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(b) total core government assets less total core government liabilities
(as defined in section 14(3)(b)) is increased each financial year
by the amount specified in subsection (2) until the level defined
by section 14(3)(b) is achieved;
(c) core government borrowing is decreased each financial year by
the amount specified in subsection (3) until the level defined by
section 14(3)(c) is achieved; and
(d) core government cash reserves are increased each financial year
to the amounts specified in subsection (4) until the level defined
in section 14(3)(e) is achieved.
(2) The amount by which net worth shall be increased under subsection
(1)(b) shall be at least an amount equal to one-eighth of the difference between
the level of net worth at the commencement of section 14 and the level defined in
section 14(3)(b).
(3) The amount by which borrowing shall be decreased under subsection
(1)(c) shall be at least an amount equal to one-eighth of the difference between
the level of borrowing at the commencement of section 14 and the level defined
in section 14(3)(c).
(4) The amounts that cash reserves are to be increased to under subsection
(1)(d) are (a)
thirty days by the end of the financial year ending the 30th June,
2005;
(b) forty-five days by the end of the financial year ending the 30th
June, 2006;
(c) sixty days by the end of the financial year ending the 30th June,
2007;
(d) seventy-five days by the end of the financial year ending the 30th
June, 2008; and
(e) ninety days by the end of the financial year ending the 30th June,
2009.
FIRST SCHEDULE
sections 23 and 26
ECONOMIC FORECASTS
1.
2.
3.
4.
Gross domestic product.
Consumer prices.
Unemployment and employment.
Current account position of the balance of payments.
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5.
A statement of all significant assumptions underlying the above.
SECOND SCHEDULE
sections 24, 26, 42 and 50
FORECAST FINANCIAL STATEMENTS
1.
Forecast financial statements shall include (a)
(b)
(c)
(d)
(e)
a forecast operating statement;
a forecast balance sheet statement;
a forecast statement of changes in net worth;
a forecast statement of cash flows;
such other statements as may be required fairly to reflect financial
performance and position;
(f) a statement of accounting policies;
(g) a statement of responsibility prepared in accordance with
paragraph 4; and
(h) except as provided in paragraph 3, in respect of each statement
referred to in subparagraphs (a) to (e) (i) comparative estimated actual figures for the immediately
preceding financial year; and
(ii) comparative actual figures for the financial year preceding
the financial year referred to in subsubparagraph (i).
2. Forecast financial statements for the core government and the entire public
sector shall also include (a)
a forecast statement of borrowings, and the comparative figures
referred to in paragraph 1(h);
(b) a forecast statement of loans, and the comparative figures
referred to in paragraph 1(h);
(c) a statement of actual commitments as at the day on which the
forecasts are finalised;
(d) a statement of actual contingent liabilities as at the day on which
the forecasts are finalised; and
(e) a statement of significant assumptions underlying the forecasts.
3.
In the case of forecast financial statements required by section 26 -
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(a)
actual figures published in the Government quarterly report
immediately preceding the economic and financial update and the
year to date budget for that quarter are required instead of
estimated actual figures; and
(b) comparative actual figures are not required.
4.
Every statement of responsibility required by this Schedule shall (a)
be signed by (i) in the case of the core government and the entire public
sector forecast financial statements, the Financial Secretary
and a member of the Governor in Cabinet appointed by the
Governor in Cabinet to do so on their behalf;
(ii) in the case of forecast financial statements of a ministry,
portfolio, the Office of the Complaints Commissioner or the
Audit Office, the chief officer; and
(iii) in the case of a forecast financial statement of a statutory
authority or government company, the chairman on behalf
of the board;
(b) include (i) a statement acknowledging responsibility for the accuracy
of the information in the forecast financial statements; and
(ii) a statement that the forecast financial statements fairly
reflect the forecast financial position and performance of the
entity for the period concerned; and
(c) in the case of the core government and the entire public sector
forecast financial statements, include a statement that those
statements include all policy decisions that have or may have a
material effect on the economic or financial forecasts.
THIRD SCHEDULE
sections 28, 43, and 51
QUARTERLY FINANCIAL STATEMENTS
1. Quarterly financial statements (or in the case of statutory authorities and
government companies half-year financial statements) shall contain for the
quarter in question, and for any preceding quarters in the current financial year on
a cumulative basis (a)
(b)
(c)
(d)
an operating statement;
a balance sheet statement;
a statement of changes in net worth;
a statement of cash flows;
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Public Management and Finance Law (2005 Revision)
(e)
such other statements as may be required fairly to reflect financial
performance and position;
(f) a statement of accounting policies;
(g) a statement of responsibility prepared in accordance with
paragraph 3; and
(h) in respect of each statement referred to in subparagraphs (a) to
(e)(i) comparative cumulative forecast figures for the current and
preceding quarters in the current financial year; and
(ii) comparative actual figures for the period corresponding to
that referred to in subsubparagraph (i) in the preceding
financial year.
2. Quarterly financial statements for the core government and the entire public
sector shall also include (a)
a statement of borrowings, and the comparative figures and
information referred to in paragraph 1(h);
(b) a statement of loans, and the comparative figures and information
referred to in paragraph 1(h); and
(c) a statement of emergency financial transactions, being financial
transactions approved under section 13.
3.
Every statement of responsibility required by this Schedule shall (a)
be signed by (i) in the case of the core government and the entire public
sector quarterly financial statements, the Financial
Secretary;
(ii) in the case of quarterly financial statements of a ministry or
portfolio, the Office of the Complaints Commissioner or the
Audit Office, the chief officer; or
(iii) in the case of half-yearly financial statements of a statutory
authority or government company, the chairman of the
board; and
(b) include (i) a statement acknowledging responsibility for the accuracy
of the information in the financial statements;
(ii) a statement acknowledging responsibility for establishing
and maintaining a system of internal controls designed to
provide reasonable assurance that the transactions recorded
in the financial statements are authorised by law and
properly record the financial transactions of the entity; and
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Public Management and Finance Law (2005 Revision)
(iii) a statement that the financial statements fairly reflect the
financial position and performance of the entity for the
financial year concerned.
FOURTH SCHEDULE
sections 29, 44 and 52
ANNUAL FINANCIAL STATEMENTS
1.
Annual financial statements shall include (a)
(b)
(c)
(d)
(e)
an operating statement;
a balance sheet statement;
a statement of changes in net worth;
a statement of cash flows;
such other statements as may be required fairly to reflect financial
performance and position;
(f) a statement of commitments;
(g) a statement of contingent liabilities;
(h) a statement of accounting policies;
(i) a statement of responsibility prepared in accordance with
paragraph 4; and
(j) in respect of each statement referred to in subparagraphs (a) to (e)
(i) comparative figures for the preceding financial year; and
(ii) comparative forecast figures for the financial year,
and an explanation of all significant differences between actual
and forecast figures.
2. Annual financial statements for the core government and the entire public
sector shall also include (a)
a statement of borrowings, and the comparative figures and
information referred to in paragraph 1(j);
(b) a statement of loans, and the comparative figures and information
referred to in paragraph 1(j);
(c) a statement of unappropriated financial transactions, being those
executive financial transactions that require, but have not been
granted, appropriation;
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Public Management and Finance Law (2005 Revision)
(d) a statement of emergency financial transactions, being financial
transactions under section 13; and
(e) a statement of trust assets, stating the revenues, expenses and
opening and closing balances for each category of such assets.
3.
Every statement of responsibility required by this Schedule shall (a)
be signed by (i) in the case of the core government and the entire public
sector financial statements, the Financial Secretary and a
member of the Governor in Cabinet appointed by the
Governor in Cabinet to do so on their behalf;
(ii) in the case of financial statements of a ministry or portfolio,
the Office of the Complaints Commissioner or the Audit
Office, the chief officer; and
(iii) in the case of financial statements of a statutory authority or
government company, the chairman on behalf of the board;
and
(b) include (i) a statement acknowledging responsibility for the accuracy
of the information in the annual financial statements;
(ii) a statement acknowledging responsibility for establishing
and maintaining a system of internal controls designed to
provide reasonable assurance that the transactions recorded
in the financial statements are authorised by law and
properly record the financial transactions of the entity; and
(iii) a statement that the financial statements fairly reflect the
financial position and performance of the entity for the
financial year concerned.
FIFTH SCHEDULE
sections 42, 43, 44 and 50
OWNERSHIP PERFORMANCE MEASURES
Financial Performance
1.
(1) Amounts for (a) revenue from trading with the Governor in Cabinet;
(b) revenue from trading with ministries, portfolios, the Office of the
Complaints Commissioner, the Audit Office, statutory authorities
and government companies;
(c) revenue from trading with any other person;
(d) surplus/deficit from outputs;
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Public Management and Finance Law (2005 Revision)
(e)
ownership expenses (such as major losses on sales of fixed assets
and downward asset revaluations);
(f) net surplus/deficit;
(g) net worth;
(h) cash from operating activities;
(i) cash from investing activities;
(j) cash from financing activities; and
(k) change in cash balances.
(2) Ratios of (a) current assets to current liabilities; and
(b) total assets to total liabilities.
Capital Maintenance
2.
(1) Details of human capital, including (a)
(b)
(c)
(d)
total full time equivalent staff;
staff turnover;
average length of service; and
significant changes to personnel management system.
(2) Details of physical capital, including (a) value of total physical assets;
(b) asset replacements as a percentage of total assets;
(c) ratio of book value of depreciated assets to initial cost of
depreciated assets;
(d) ratio of depreciation to cash flow on asset purchases; and
(e) any changes in asset management policies and systems.
(3) Details of capital expenditure, including (a)
description and amount of major new capital expenditure
projects; and
(b) description and amount of existing major capital expenditure
projects, and details of whether (i) all development projects are likely to be completed on due
date;
(ii) all development projects are within budget; and
(iii) there are any external changes which threaten the viability
of any development projects.
Risk Management
3.
Details of key risks to the activities of the entity, including 69
Public Management and Finance Law (2005 Revision)
(a) an explanation of each risk;
(b) any change in status of each risk; and
(c) financial quantification of each risk.
Publication in consolidated and revised form authorised by the Governor in
Cabinet this 12th day of July, 2005.
Carmena Watler
Clerk of Cabinet
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Public Management and Finance Law (2005 Revision)
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Public Management and Finance Law (2005 Revision)
(Price $ 14.40)
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